As of 04/12/2024
  Indus: 37,983 -475.84 -1.2%  
  Trans: 15,498 -250.79 -1.6%  
  Utils: 855 -6.47 -0.8%  
  Nasdaq: 16,175 -267.11 -1.6%  
  S&P 500: 5,123 -75.65 -1.5%  
YTD
 +0.8%  
-2.5%  
-3.0%  
 +7.8%  
 +7.4%  
  Targets    Overview: 04/12/2024  
  Up arrow39,800 or 37,700 by 05/01/2024
  Up arrow16,200 or 15,000 by 05/01/2024
  Up arrow885 or 850 by 05/01/2024
  Up arrow16,700 or 15,800 by 05/01/2024
  Up arrow5,250 or 5,025 by 05/01/2024
As of 04/12/2024
  Indus: 37,983 -475.84 -1.2%  
  Trans: 15,498 -250.79 -1.6%  
  Utils: 855 -6.47 -0.8%  
  Nasdaq: 16,175 -267.11 -1.6%  
  S&P 500: 5,123 -75.65 -1.5%  
YTD
 +0.8%  
-2.5%  
-3.0%  
 +7.8%  
 +7.4%  
  Targets    Overview: 04/12/2024  
  Up arrow39,800 or 37,700 by 05/01/2024
  Up arrow16,200 or 15,000 by 05/01/2024
  Up arrow885 or 850 by 05/01/2024
  Up arrow16,700 or 15,800 by 05/01/2024
  Up arrow5,250 or 5,025 by 05/01/2024

Bulkowski's Swift Transportation (SWFT) Trading Quiz

Released 8/4/2022.

SWFT: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

This is based on an actual trade.

 

1 / 6
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): Ascending broadening wedge, small head-and-shoulders top, Eve & Adam double top, broadening bottom, falling wedge, symmetrical triangle.

See the next slide.
2 / 6
chart pattern

The symmetrical triangle shows a downward breakout (A) in which price returns to the triangle trendline boundaries, breaks out upward, and closes above the top of the triangle, busting the downward breakout.

Question 1: Do you buy, short, or avoid trading this stock?

Question 2: If trading this one, what is the target price?

Question 3: If trading this one, what is the stop price?

The answers are on the next slide.
3 / 6
chart pattern

Answer 1 (buy?): Since the latest breakout is upward after a downward breakout, buy.

Answer 2 (target?): Measure the triangle height and project the height upward from the breakout. Here's the math: 18-16.25+17.65 = 19.40. That's a rise of 10%. I picked a target using overhead resistance, shown as the green line and knot of resistance circled.

Answer 3 (stop?): My notebook entry spells out the details, but it's point A on the chart.

"Date: 10/25/05 placed after market close today. Bought at: 18.06 on 10/26/05. Stop: 16.53. or 8.5% away. (2 cents below point A) Upside target: 21 (circled), site of some resistance, also some at 19. Future S&P direction (guess): Up for a few more days until it hits a symmetrical triangle in the index and then tumbles. Buy reason: busted symmetrical triangle."

How did this trade do? See the next slide.
4 / 6
chart pattern

Price has climbed since purchase.

Question: What do you do now? Do you trade the stock or what? The answer appears on the next page.

My answer is on the next slide.
5 / 6
chart pattern

From my notebook: "11/3/2005 After the close: Stop raised to 17.38 since the stock made a new minor high.

11/7/05 Stop raised to 17.67. This is below the Fib retrace and at the top of 10/28/05 daily pipe bottom.

11/10/05 Stop raised to 17.93 as the stock makes a new high but the stop is still below the 62% Fib retrace.

11/11/05 Stop raised to 18.47. Big day (up $0.68) as the stock was upgraded by a broker. This is just below the 50% Fib retrace value and below 18.50 round number."

The above chart shows the price action after I bought. Price made a good move uphill.

Question: Is it time to sell, buy more, or just hold on?

The answer is on the next slide.
6 / 6
chart pattern

Notebook: "Date placed: 11/22/05. Order type: buy stop at 20.76. Bought at: 20.7585 on 11/23/05. Stop: 18.47. Placed 11/23 Upside target: 24. Future market direction: Up. S&P is moving up parabolic and I'd be surprised if it continues much longer. Indicators: CCI (commodity channel index) should signal a buy tomorrow if price moves up. Bollinger bands: price is nearing the top of the band. Industry: Almost all are moving up robustly. SAR (support and resistance): 21-22 during April 2005, 23.50 or so. Buy reason: Big W breakout upward, confirming the chart pattern. Oil prices have been trending downward.”

Question: Did I made the right move, to buy more?

Notebook: "Date placed: 11/28/05. Sold at: 19.1865 to 19.25. on 11/29/05. Sell reason: The stock has made a large down move today, following the market lower and others in the industry down. I believe this will move lower, forming a handle to the Big W. On the intraday scale, 1-minute, there's support during the last 1.5 hours at 19.46. I placed the stop below round number support at 19.43. In short, I raised the stop to 19.43. I should have placed the stop at 19.80.

The stock moved much lower on the open and I sold near the intraday low. The stock recovered but it took 20 minutes with 4 downward price lunges before recovering.

As you can see, the stock continued to drop before recovering and heading back up. I ended up losing 1.3% on the two trades, combined. Sigh. Good idea but bad execution. I should have expected the retrace after the stock move higher and then rode it up to 24.

The End.

See Also

 
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