This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Big Trades for a Ping-Pong Market


First up is Chevron ( CVX), the $323 billion oil and gas supermajor. Chevron gets top billing today because it's had the highest correlation with the S&P 500 lately -- an unlikely pair given Chevron's hefty commodity exposure. But just like the broad market, Chevron is testing trendline support today, and there's a trade to be made in shares.

>>5 Stocks With Big Insider Buying

You don't have to be an expert technical analyst to figure out what's going on in shares of Chevron. The energy giant has been in an uptrend since mid-November (like the broad market), bouncing between well-defined trendline support and resistance levels all the way up. The ideal time to buy a stock in an uptrend is on a bounce off of support -- that's because trendline support is the spot where shares have the highest upside potential and the spot where downside risk (that is, how much you have to lose before you know you're wrong on the trade) is the smallest.

Notice that I said that it makes sense to buy on the bounce. Trendlines do eventually fail, so waiting for Chevron to actually bounce off of support confirms that shares can still catch a bid at that level. Yes, waiting does mean that you sacrifice some small upside, but it also materially increases the probability of a winning trade.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AAPL $110.38 0.00%
CVX $81.55 0.00%
JNJ $93.93 0.00%
PFE $33.08 0.00%
WFC $51.26 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs