7 Huge Swing Trades to Make for the Fourth Quarter

These seven beauties offer stellar trends and solid momentum to boot

By Tyler Craig, Tales of a Technician

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stock charts

Source: Allan Ajifo via Wikimedia (Modified)

The stock market is heading into the fourth quarter with the wind at its back. Indexes like the all-important S&P 500 are a stone’s throw from all-time highs. Better yet, the momentum-laden Nasdaq Composite is heading into the best quarter of the year with muscles flexed and pistons firing.

Don’t let the recent downshift in directional action from the S&P 500 fool you.

Underneath the surface, things have been getting uppity. I can think of a number of high-octane stocks that have rewarded momentum lovers handsomely. Indeed, many growth stocks continue to deliver beautiful breakouts and profitable dip buys, sleepy market notwithstanding.

While I could regale you with charts of the old FANG gang, it likely won’t be anything you haven’t already heard. Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) all continue to print profits and look as sexy as ever.

But let’s trod the path less traveled, shall we? If nothing else, today’s morsels will provide variety and volatility to your trading watch list. Swing traders have been all over these stocks so it’s high time you get them on your radar.

Behold, seven huge swing trades to make for Q4.

Huge Swing Trades to Make for Q4: Twilio (TWLO)

Huge Swing Trades to Make for Q4: Twilio (TWLO)
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Source: OptionsAnalytix

Twilio Inc (NYSE:TWLO) tops our list on account of its uncanny consistency.

The San Francisco-based cloud communications company has yet to disappoint the denizens of the Street. Successful swing trades litter its post-IPO chart like forgotten candy on a parade route.

Each and every dip has been bought speedily at the rising 20-day moving average, while breakouts have delivered brag-worthy gains. Provided TWLO stock remains above $50, the future looks bright. Its current pullback looks as attractive as its predecessors, so consider climbing aboard if Twilio pivots higher in the days to come.

Buy TWLO stock above $65.

Huge Swing Trades to Make for Q4: Acacia Communications (ACIA)

Huge Swing Trades to Make for Q4: Acacia Communications (ACIA)
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Source: OptionsAnalytix

Like Twilio, Acacia Communications (NASDAQ:ACIA) stock has rewarded traders brave enough to scoop up shares at its IPO price with epic gains. Since its humble beginnings at $30, ACIA stock has climbed a breathtaking 400%.

That’s no joke, kids.

Over the past two months, ACIA has finally paused long enough for a trading range to develop. And that’s a good thing. The sideways churn has aided in working off its extreme overbought conditions while allowing the 50-day moving average to catch up.

While ACIA may shake ‘n’ bake for a while yet, expect an eventual breakout topside. I would change my bullish tune if Acacia were to breach the $95 level.

Buy ACIA stock above $117.

Huge Swing Trades to Make for Q4: Shopify (SHOP)

Huge Swing Trades to Make for Q4: Shopify Inc (SHOP)
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Source: OptionsAnalytix

Buyers of the mid-2015 Shopify Inc (NYSE:SHOP) IPO were treated to gut-wrenching twists and turns including a pair of 50% haircuts. Those still holding SHOP stock have been rewarded for their intestinal fortitude. The Canadian e-commerce company just tagged a new all-time high.

Shopify shares have almost doubled in price this year, generating a number of lucrative swing trades along the way. Provided the stock remains north of its 50-day moving average, bet on the uptrend continuing.

Buy SHOP stock on a break above $45.

Huge Swing Trades to Make for Q4: Cotiviti (COTV)

Huge Swing Trades to Make for Q4: Cotiviti Holdings (COTV)
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Source: OptionsAnalytix

You can count Cotiviti Holdings Inc (NYSE:COTV) among the ranks of killer 2016 IPOs. The leading payment accuracy provider has just about doubled since its late-May debut.

Cotiviti is a smaller company somewhat lacking in the liquidity department (daily trading volume is averaging around 300,000), but it has one heck of a chart.

Like its predecessors, COTV’s technicals are a thing of beauty. Since breaking out one month following its IPO, Cotiviti Holdings has blazed an uninterrupted path of higher pivot highs and higher pivot lows. The trend is your friend on this one.

Buy COTV above $33.25.

Huge Swing Trades to Make for Q4: MicroSemi (MSCC)

MSCC
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Source: OptionsAnalytix

Semiconductor stocks have been all the rage of late. No doubt this industry has been a driving factor behind the Nasdaq’s continued relative strength. MicroSemi Corporation (NASDAQ:MSCC) lies off the beaten path but boasts a very healthy price chart.

MSCC shares just broke out to yet another in a long line of new all-time highs. A glance at the volume panel reveals a growing number of accumulation days cropping up over the past two months.

Performance chasing in the tech space should help MSCC stock continue to deliver quality swing trades in the quarter ahead.

Buy MSCC stock above $43.

Huge Swing Trades to Make for Q4: Baker Hughes (BHI)

Huge Swing Trades to Make for Q4: Baker Hughes Incorporated (BHI)
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Source: OptionsAnalytix

Our next pick comes straight out of the oil patch.

Gushing crude prices have brought a turnabout in energy stocks this month. And now, Baker Hughes Incorporated (NYSE:BHI) stock looks the healthiest it has been in years.

BHI has remounted the 200-day moving average, which suggests a long-term reversal is finally materializing. With Thursday’s pop, the recent price base is nearing completion. Further strength out of crude oil should spur the energy recovery (and thus BHI) on.

Buy BHI stock over $53.

Huge Swing Trades to Make for Q4: Momo Inc (MOMO)

Huge Swing Trades to Make for Q4: Momo Inc (ADR) (MOMO)
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Source: OptionsAnalytix

Our final selection is the appropriately named Momo Inc (ADR) (NASDAQ:MOMO).

The Chinese ADR staged a stellar breakout in August on heavy volume and has rarely looked pack. The past six weeks have seen MOMO stock build a clean sideways base, setting up a new potential breakout over $25.

Buy MOMO over $25.50 with a stop below the low of the base at $20.

As of this writing, Tyler Craig held bullish positions in NFLX and AAPL.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/7-huge-swing-trades-fourth-quarter/.

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