 What is going on everybody? It's Stas here. Welcome back to another video. So in this video, we're gonna be talking about three potential swing trades that I'm looking to make this February of 2019 and one of these three that I'm gonna be talking about here one of these three stocks I'm actually already in and we're gonna be talking about my plan for that particular stock So for everybody out there that enjoys these videos you find value in these videos Feel free to go down below and hit that like button and drop a comment down below as well Let me know what stocks you want me to talk about for tomorrow's video because for all you that don't know The market is actually closed tomorrow So I was gonna make a shorter video today talking about my three potential swing trades and tomorrow I'm gonna hop into some more stocks some more ETFs So again, if you guys want me to talk about a specific stock or an ETF in tomorrow's video Drop that comment down below right now and let's talk about what three companies I am looking to swing trade for this Upcoming week and for the next couple of weeks starting off here with ticker symbol CAT also known as Caterpillar Inc guys and this is one of the biggest industrial companies out there We saw them report earnings about two three weeks ago on the 28th of January and I'm sure a lot of you guys remember this if you follow the stock market closely or if you're an investor Long-term investor or you're holding you know shares in CAT right now the stock tank from 137 down to about 123 I believe this was about a 7 8 maybe 10% move. Let's see Yeah, it was closer to actually an 11% move to the downside on their earnings report, right and pretty much guys from there What we've been seeing in CAT stock is some very nice recovery, right? If we're just focusing on these candlesticks from around the 28th up to now, right about two three weeks of candlesticks here We're seeing solid uptrend momentum solid uptrend movement of higher highs and higher lows Right so we can see that this one's pretty much continuing Or rather it's starting and it's continuing on uptrend from that big drop that we saw from their earnings report So this is a very good sign that we're slowly filling that gap Which we pretty much already almost filled the entire gap up to around 138 from the drop of their earnings report and what I want to see guys to put money into Swing trade CAT is to see potentially a break out of this 138 Resistance that we do see here from again where they dropped right before their earnings report So if we take a look here so we can set some longer term supports and resistances so we can see what the margin of profit is What potentially we can lose well if we do set some other resistances here the next one being at around 142 if we do end up breaking out of this one at 138 we could potentially run from 138 up to around 142, which is about a 3.4 percent margin of profit but guys if we do end up getting rejected here by that resistance We could end up pulling back down and testing this previous resistance, which is now a new support level at around 134 so what I personally think could happen guys is I think we could end up pulling back Maybe down to around 134 135 due to the RSI being a bit overbought and due to us already pushing to that higher high point in this recovery You know uptrend pattern that we see here So if we did end up we're getting rejected pulling back down to around 134 135 That is where I can see another potential entry point for cat But again, you know if we do end up popping above 138 and then holding 138 139 ish as a new Support level because it's a previous resistance level that could also be a good entry point And then from there we'll be looking to fill that three four percent gap to the upside But two things can happen here guys, you know, we can either break above here or pull back and test this spot So I'm gonna be waiting to see what ends up happening in cat on Tuesday to determine What I'm going to do with the stock, you know, ideally I would love to see the pullback Down around here to get a better entry point because let's say we do break above here That's gonna put the stock at even more overbought level making it a little bit You know trickier in terms of entering right? I would much rather see the pullback to get into here and then I you know set a stop loss about 1.5 percent to the bottom and then guys if we do get in down here That's gonna open up even more margin of profit Obviously up to that next resistance where this would be the first selling point and if we break out of there We can get up to five six percent margin of profit if we do enter here And we do end up selling at the second resistance at around 142 and of course guys we can continue up trending, you know in cat maybe even back up to let's say 145 maybe back up to around 150 But I'm more conservative of a trader guys and I would have loved to capture, you know Three to five percent over a span of maybe two three weeks of a swing trade here and play it safe You know selling before these resistances depending on if we break this one I would want to sell here and let's say we have trouble breaking above this one if we do pull back and enter here That would be another good selling point for around a two percent Profit so guys right now the first one I'm watching is cat and I want to see which way we're gonna be going up or down Before you know formulating a full plan on where to trade it But as of now guys, it is looking pretty good. The setup is looking good for a potential Swing trade so the second one we're gonna be talking about and this is one that I'm already in from Friday guys is J and J Johnson and Johnson guys so this one The patterns looking very nice, you know, we saw the pullback from around 148 down to about 125 We saw a double bottom here, which is a very good sign that we're reversing to the upside We saw the break above the 50 SMA here We saw the nice push up and eventually the break above the 180 SMA Showing us the full uptrend reversal pattern that we do want to see You know when we're swing trading stocks that have recently pulled back pretty heavily, right? And we can see like I said, we pulled back from around 150 down to about 125 Which was a big 15% pullback in J&J and I do believe this is when This pullback is when they got what is that? Well, what do they find in their products? They found something in their products investors obviously didn't like it the stock fell I can't remember what it was. I think it starts with an a Remind me down below in the comment section if you guys remember what I'm saying But that caused the stock to tank pretty much the double bottom here and now we're pushing up So where did I enter this position guys if you watched the video on Friday? I believe I'm in at around 134 135 ish I can't remember exactly where I got in but I'm in right around here on this pullback Right about 11 o'clock. I believe I got in because again for those of you guys that didn't watch that video I wasn't able to day trade in the morning this past Friday. I had a doctor's appointment So I ended up just taking a swing position in J&J and didn't really do much other trading on Friday So I'm currently in guys at around 135 136 ish I believe like 134 somewhere around there and I'm up about point five point six percent on my position here And what I want to see, you know in terms of J&J guys is ideally If we look back here on the 184 hour chart I ideally want to get out of this position at around a hundred and forty dollars Which is the previous us support here, which is now obviously a new resistance Since we did break below it about a month or two ago when we did get that bad news About this product or this you know thing found in the product again I can't remember what it is off the top of my head and you know honestly guys from where we are now or where I got in There is a strong about three four percent margin of profit on J&J and this swing trade I'm planning on holding it for about two three weeks and a lot of you might be like oh, that's not a lot of margin You know, I rather go swing trade some inverse ETFs or something more volatile where I can get a lot more money But remember guys that is way more risky, right J&J, you know these companies cat These are quote-unquote, you know safer companies to swing trade in my personal opinion. They're not as volatile Right, they're not crazy moving and the charts are a little bit more You know easier to predict and you know if you guys relate to that You know, let me know down below in the comment section But you know these larger cap stocks for the most part in my opinion for swing trading They are much easier to predict. So, you know, the first I have a stop loss set Right below. Well, you know my exit, you know, if I have to cut losses on this one My exit would be if we break below this resistance or the old resistance, which is now a new support at around 134 well not exactly at this level guys if we break below this 1% below this is where I'm planning on cutting my losses because I'm in at around 135 136 so I do want to give it some wiggle room I don't want to just cut losses, you know once we get below here because that's a very very tight stop loss if we do the Math on that that's literally like a point two point three percent stop loss So I want to give it a little bit more wiggle room here, you know potentially, you know Probably cutting losses one percent below this point, right? So if we get you know, let's say if we get to where would that put the price if we get to around 133 132 that's probably where I'm gonna end up cutting losses in J&J with that cell point up here at around 130 that's what I'm planning on doing right now in terms of J&J and a lot of you guys ask me, you know How do I enter my positions? Well, I you know, I scale into my positions meaning I Put money into a stock and then I wait for the uptrend to continue before adding more money into that stocks You know, I'm pretty much scaling in with 10 15% of my goal position at first So in this example, right in this case, I scaled in with about 10 15% here If we push up and then end up pulling back a little bit holding 136 I'll add more to my position right continuing adding more as the uptrend continues That's my entire goal in you know swing trading and if we do, you know, let's say if you know if the trade doesn't go our way Right, let's say we do end up falling 1.5 percent You know, if I only scaled enough into my position with 10 15% of the goal position at first I'm not going to be losing as much money if we do end up pulling back compared to if I put, you know 50% or 75% of my goal position right off the bat. I would be losing more money You know, if we do end up pulling back and the trade doesn't end up going our way You know what I mean there guys So that's very very important in my opinion when it comes to you know, swing trading stock So that's the second one guys J&J Johnson and Johnson and the third one being Microsoft guys ticker symbol MSFT You know, this is one just like, you know J&J and just like cat You know, this one's been pulling back pretty drastically over the past couple of weeks pretty much since the beginning of October The market took a hit, you know, we saw it Microsoft go down all the way to $93 and from there It's been recovering very nicely as the entire market has been recovering very nicely from the end of 2018 We've been seeing the higher lows nice recovery patterns here. We broke above that 180 SMA We see the 50 SMA cross above the 180 SMA Which is a very bullish sign and that could indicate more green to come and just to quickly point that out on these previous stocks as well I forgot to point that out on J&J We see that cross as well guys the bullish cross 50 above the 180 and we also see that on cat I'm pretty sure right. Yep We see that across there about you know back in the beginning of January the nice big cross above there And of course just because we dumped that did not end up changing the you know The SMA pattern right here, which is a very good sign and we are continuing to push up in cat as well So we see that same exact thing here in Microsoft guys ticker symbol MSFT and we can see that this week this previous week actually we broke above that 107 resistance, which is what really opened my eyes for a potential swing trade here in Microsoft So this is a very bullish move the fact that we broke above the resistance now We could be headed to the next resistance, which is at about a hundred and eleven dollars where I would possibly You know probably want to sell my shares if I do get into this position This week and what I want to see guys before I do start building a swing position in Microsoft Is I want to see it hold this previous resistance as a new support at around 108 so let's say, you know Tuesday rolls around We start to see a little push up here again Maybe into the mid 108 and then we start to see some consolidation there throughout the entire day and maybe into Wednesday We see some consolidation then the slow push up maybe towards you know the 108 75 range That would be a good entry point in my opinion for Microsoft after two days of consolidation or even one day of Consolidation depending on what the trend looks like that would be a good entry point for around a 2.5 to 3% swing Up to that previous resistance and we can draw another resistance at around 113 Where you know if we break above the 110 or 111 resistance and we want to hold it even longer You know that would offer us even more profit potential upwards of 5% here in terms of Microsoft So what I'm watching for guys is to sum it up I want to see the hold on this new support here and I want to see the gap fill up to around 111 Hopefully I can profit on that if I do get in you know at the right time And of course if we break above that the next spot is going to be 113 114 Which offers upwards of a 5% profit guys. So those are three stocks I'm looking to swing trade in this month of debutary in 2019 drop a comment down below What are you looking to swing trade? I would love to know let me know down below in that comment section And again, if you guys want me to talk about a specific stock or etf in tomorrow's video Drop that down below in the comments as well, and I'll talk about that in tomorrow's video But to wrap things up today guys, that is the video for the day I hope you all enjoyed it found some value in it If you did feel free to hit that like button and consider subscribing and turning on that notification bell If you guys want to see further content for me, I'll catch you all in the next video. Thanks again for watching Have a great night. I'll catch you all in the next video