Another Example of Swing Trading selection.

Nvidia turned up as successfully passing the better than average Clean Surplus ROE sometime in 2016 when the share price was under $25. As of the close on Friday, November 12, 2021, it was at 303.50. On May 28, 2021, the weekly signaled a purchase under $160. The daily trade trigger signaled a purchase most recently on October 14, 2021, at a price less than $217. NVDA is one of the many high-quality shares that could be in a Swing Trading portfolio. Buy when both the weekly and daily agree. Stay on the sidelines during periods of disagreement.

Swing Trading

Selecting candidates for Swing Trading positions is difficult. I have found that finding moat-type businesses make the best initial candidates. Good financial underpinnings are essential. Joseph Belmonte of Buffett and Beyond has developed a screening tool based on Clean Surplus ROE(Return on Equity). His conclusion is that “portfolios made of stocks with high Clean Surplus ROE’s outperform all other portfolios”. An example is portrayed below. Salesforce (CRM) first qualified with a higher than average Clean Surplus ROE during 2016 when the shares were trading between $70 and $80.                                                                                                                                                                                                                                                                                                                                                                                                                                                         Closing prices are as of the close on Friday, November 5, 2021.                                                                                                                                                First, find the candidates and then use weekly technicals to find the overall trend.  Use the daily as a trend decision trigger. The weekly signaled a buy decision at the end of June 2021. That is, only trade LONG from that date. The daily concurred with a long position on October 13, 2021.