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

Top Swing Trade Ideas for Monday, June 16: Cree, Isis, More

2. Now let's look at Financial Engines, which provides independent, technology-enabled portfolio management services, investment advice and retirement income services to participants in employer-sponsored defined-contribution plans in the U.S.

Financial Engines traded up 2.38% on Friday, closing at $47.25 per share.

  • Friday's range: $45.31 - $47.38
  • 52-week range: $37.14 - $71.08
  • Friday's volume: 396,698
  • 3-month average volume: 569,165

Financial Engines was a rounded bottom breakout on Friday, June 6, and has been confirming and consolidating since. On Friday, the ultimate confirmation happened when the 34-exponential moving average crossed over the 50-day simple moving average. Plus, price action moved over the recent consolidation levels. Additionally, volume is increasing on the upswing, which tells us that the investor sentiment is behind the bullish move.

Now we should look for the breakout.

I'd look for an entry as cheap as possible, anywhere between the 50-day simple moving average at $43.74, to Friday's close at $47.25. I'd set a stop at about $41.20, which is at the bottom of a gap-up that happened on June 5. I'd target the 200-day simple moving average at $56.23, which is almost 19% from Friday's close.

There is overhead resistance at $47.70, $49.69, $53.05, and then again at the 200-day simple moving average, so let it consolidate at these levels.

Stay long until you see a confirmed sell signal or a close below the t-line. Before exiting the trade, ask yourself, "Would I buy at this level?" This question has kept me from selling prematurely on countless occasions.

3. Lastly, we'll look at Isis Pharmaceuticals, which is engaged in the discovery and development of antisense drugs using a novel drug discovery platform.

Isis traded up 4.31% on Friday, closing at $33.63 per share. 

  • Friday's range: $31.34 - $33.70
  • 52-week range: $20.52 - $62.66
  • Friday's volume: 2,727,307
  • 3-month average volume: 2,743,820

Isis is back on the buy list, as it formed a  bullish engulfing signal on Friday at a support level. I recommended Isis as a buy on May 27, and the stock has traded up almost 17% since then.

Now, there was a little pullback which offered us an opportunity to add to the position. On Tuesday of last week there was a doji gap-up, which has huge bullish  implications, so look for this trade to continue to break. (A doji chart has a stock price that opens and closes in almost the same spot, but it may be wide-ranging in price over the course of the day.) Plus, the 34-day exponential moving average crossed over the 50-day moving average on Friday, confirming the continuation.

This trade is going places, so don't be left behind.

I'd look for an entry on any strength, anywhere above the 50, which is at $30.18. I'd set a stop below the upward channel, as low as the 20-day simple moving average at $28.90. My first target would be the 200-day simple moving average, at $37.87, which is 12.5% from Friday's close. This trade will likely trade well above the 200, so maybe just take partial profits there, and look to add to the position on the next pullback. 

The next target would be at the next resistance level, at about $39.66, then $41.64, and so on. Stay long until you see a confirmed sell signal or a close below the t-line.

Come see me at my second home and sign up for the two-week trial. You'll find a trading room with tons of professional traders who help each other learn and succeed.

Congress Readies Hearings on AT&T, DirecTV Tie-up

Medtronic to Pay $43B for Ireland's Covidien

5 Reasons So Many Seniors Fall Victim to I.D. Theft

Fusion-io Soars Following SanDisk Buyout

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
CREE $29.30 -0.20%
FNGN $25.45 -0.20%
ISIS $56.88 2.62%
AAPL $94.26 -0.77%
FB $101.50 2.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs