Strong Get Stronger Swing Trading and Momentum

Stocks fell for most of the day on Thursday before rallying powerfully into the close leaving the Dow up 2% and the S&P 500 up 1%.

There are two modes that should be of interest to swing traders who use our Short Term PowerRatings. The first mode is the mode in which we find out trading opportunities to the long side and the short side, in stocks and in exchange-traded funds. This mode consists of stocks or ETFs that are pulling back, perhaps as a result of profit-taking, but still trade above their 200-day moving averages. This mode also consists of stocks or ETFs that are rallying, sometimes strongly, but trade below their 200-day moving averages.

These two situations describe our opportunity mode. It is an unusual, but frequently recurring moment in the markets when short-term trader psychology gets ahead of itself, making good stocks too cheap and bad stocks too expensive. Our Short Term PowerRatings help us identify these moments, signaling the good stocks on sale with high Short Term PowerRatings of 8, 9 or 10, and branding the bad stocks that are overvalued with low Short Term PowerRatings of 1 or 2.

The other mode is the normal, trending mode. This is the mode in which stocks that are strong and trading above their 200-day moving averages are moving higher, and those stocks that are weak and trading below their 200-day moving averages are moving lower. This is what we tend to expect in markets â€" it is the stuff that momentum and trend traders feed on.

It is also the mode we find ourselves in right now.

There are some opportunities for swing traders, listed below as they appeared as of the Thursday close. But while the late-day rally helped make a few stocks and indexes less oversold than they were the day before, we still have a situation where the strong â€" mostly inverse ETFs â€" are getting stronger and the weak â€" most of the rest of the world of stocks and ETFs â€" are getting weaker.

1.	Greek Protests, End of Week Profit-Taking Send US Stocks Lower
2.	Will Greek Debt Deal Keep Stocks Sailing?
3.	Market Pauses as Greek Debt Deal Misses Deadline
4.	With Bulls in Control, Market Rallies to Overbought Extremes
5.	Positive Economic News Keeps Stocks Aloft
6.	Market Reality Check Follows Strong January
7.	Stocks Trade Down with Europe, Up with the Nasdaq
8.	Europe Back on the Agenda
9.	One Prospective RIA's Journey
10.	The "Buy First and Ask Questions Later" Rally

Name	Symbol	PR
Air Transport Services	ATSG	10
Benchmark Electronics	BHE	10
Caribou Coffee Company Inc	CBOU	10
Cepheid	CPHD	10
Commercial Vehicle Group Inc	CVGI	10
Dana Holding Corporation	DAN	10
Fushi Copperweld, Inc.	FSIN	10
Gtx	GTXI	10
Ista Pharmaceuticals Inc	ISTA	10
iShares Dow Jones Transportation Average Index Fund	IYT	10

Strong Get Stronger: Swing Trading and Momentum

Swing trading, day trading, and ETF trading using quantified trading strategies and systems.