Momentum Trader Report: 05/02/10

April is gone, and it was a great month for momentum trading. May is now here, and as they say, ‘Sell in May’. Of course, that wasn’t true for last year, but the market is looking a bit soft as we head into May. This chart of the S&P  500 is still technically bullish, but it has become more volatile recently with more frequent distribution days.

There are many predictions about what the market is going to do here.  I think the market could pull back like it did in January, form a V pattern and resume the bull rally. I think the S&P 500 could pull back to the 50-day MA, maybe lower. Who knows? But when it’s over, I do think the market will move higher. But I will wait for some confirmation before taking on new swing positions. The long bodied candles show volatility is back, and for now, day trading looks to be where the action is.

ANV was a stock I had on the Watchlist last week. It moved strongly Thursday and Friday, giving back soem on  Friday, but still looking good.

I posted some charts on Wednesday night showing some good looking charts. Some of those moved well on Thursday, such as….

BEXP is looking OK, as do many oil stocks.

If volatility continues, I will watch VXX as a possible day trade candidate on down days, using my strategy for day trading the 3X ETF’s.

As the market corrects, I sometimes give back some of the gains from the previous rally. I am determined not to repeat that mistake this time. I’m sitting on some fat gains and I plan to keep them, so it’s day trading for now. These stocks all look good, and could make a nice move on a strong day in the market. I may hold overnight if they rally into the close.

Trade Ideas for 05/03/10:

Note: I am removing BKD from the Watchlist, since they report earnings tomorrow AH, but could be one to watch on Tuesday it earnings are good.

Good luck and good trading!