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

Big Swing Trade Ideas for Friday, May 16

Sprint traded up on Thursday 6.01% to $9.53 per share.

  • Thursday's range: $9.00 - $9.66
  • 52-week range: $5.61 - $11.47
  • Thursday's volume: 39,296,444
  • 3-month average volume: 15,900,600

Sprint had a big day yesterday and is near a breakout level of about $9.60.

Sprint beat estimated earnings on April 29, and has traded up 25% since earnings were reported. That's lucky for those who bought at the bottom!

We need to see continued strength today, but Sprint may pull back a little, due to normal Friday profit-taking. A pullback will offer us a better entry price. A good entry would be anywhere above $9 and below yesterday's close of $9.53, or an inside day entry. Start with a 1/4 position and add to the position on the breakout above $9.60.

I'd set a stop below yesterday's low, say about $8.90. Target the 52-week high of $11.47, which is about 17% to the upside. There is resistance at $9.79, then again at the gap down that occurred on Jan. 3. The gap down resistance levels are $10.03 to $10.40.

Stay long until you see a confirmed sell signal or a close below the t-line.

3. Next, let's see about Walter Investment Management, which together with its subsidiaries provides business services to the residential mortgage industry in the U.S.

WAC traded down on Thursday 1.74% to $28.81 per share.

  • Thursday's range: $27.71 - $29.08
  • 52-week range: $24.00 - $45.12
  • Thursday's volume: 1,330,776
  • 3-month average volume: 1,123,500

Walter more than doubled its estimated earnings, it reported last week. It had a huge day following that report, up 16.5%. Then it trade up a couple days, and profits were taken, gapping down on Wednesday. The gap down tested the bulls, and I believe the bulls prevailed, trading back over the t-line.

One problem is Jefferies' downgrade of the stock today.

There is resistance to $29.30 from the gap down, which has also been resistance for the last few months. The next overhead resistance levels are at $30.23, $30.78 and $33.20.

We need to see continued strength today and look for an entry above the t-line, at $28.64. Start with a 1/4 position and add to the position at the breakout above $30.65.

I'd set a stop at yesterday's open of $28.17. Stay long until you see a confirmed sell signal or a close below the t-line.

Good luck traders, and happy Friday!

>>Read More: Apple Has Opportunity To Succeed Where Pandora Has Failed

>>Read More: Reduce Your ETF Risk, Not Well-Deserved Rewards

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

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
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
Only $49.95
14-Days Free
14-Days Free
RP $21.99 0.00%
S $3.43 0.00%
WAC $7.25 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs