I wanted to share two swing setups that are currently on top of my watchlist. Due to the currently mixed nature of the markets, I'm looking at both: the long and the short side.
AOL had a nice breakout after earnings. Of course, trading breakouts directly is not a high probability move unless associated news is game-changing. Statistically, most breakouts fail. A better way is to trade the pullback after frustrated smaller players closed positions and professionals took profits into the news.
AOL has lost almost 15% since the beginning of last week and price is approaching potential support levels. The trade at this point is to go long on a trend change on the lower time frame. $39 is the critical price level to watch:
Note that I'm already long AOL in the Covestor Model Portfolio since I'm trading the declining negative momentum, which is very aggressive.
This is a classical "Anti" trend change trade (Adam Grimes for reference): an impulse move on November 7 after the election initiated the setup. Since then, MS consolidated in a tight range. Again, the trigger is a potential breakout on the intraday time frame. $16.3 is the level: