The charts are once again revealing some interesting swing trades as the markets are getting smoked on continued European debt crisis worries. The key with any chart is to find a level that has significant support. There, wait patiently until price hits and pull the trigger, buying long. With the markets sharply lower, a few stocks are reaching respectable pull back levels, hitting their 200 moving averages on the daily chart.
The first chart that looks promising is Applied Materials, Inc. (NASDAQ:AMAT). The stock is sharply off its recent highs. In addition, the lows of the day kissed the 200 moving average on the daily chart at $13.72. This sets up for a solid bounce in the coming days.
Another beautiful bounce chart is Deere & Company (NYSE:DE). Deere, like Applied Materials has run into the 200 moving average at a level of $82.50. This represents a solid long opportunity for the rest of the week.
The markets continue to be sharply lower today as the Dollar surges. The SPDR S&P 500 ETF (NYSE:SPY) is at $131.79, -1.82 (-1.36%), the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is at $123.31, -1.54 (-1.23%) and the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is at $56.82, -0.94 (-1.64%).
Is is very possible the markets bounce later this week again as volume dries up into the Memorial Day weekend holiday. In addition, any pull back in the Dollar will pop the markets back up.