That is nothing new to any of you that know me. I have to pick a swing trade every week for this Spiketrade.com website. Well, I don't have to, but I want to.

Last week we doubled down on our Monsanto play and saw a small win (1.4%) bringing our gain to 5.3% in two weeks. We have chosen not to exit the position, but to tighten our stops. We can not lose money on this position at this moment. We have bumped our target to 112.00.

The week ended up near a new 5 year high despite some disappointing earnings. Good economic intel and a kind gesture by republicans to help kick the can down the road, sparked the market.

We pointed out the resistance line of 1,475 in the S&P last week. We broke threw and held it. That means we have to be looking for some new technical indicators. I will share them once we get and confirm them. No one (including Barron's is throwing out guesses over the weekend.

One of the early tells was provided by my buddy Tim, where one of his research reports is floating a mid to late February VIX of 11.20. It is currently trading at pre crisis levels of 13 and change. Just guessing what that could do to support numbers, we could see a technical support at 1,450 and a new resistance line at 1,498.

Now there is a lot of pin action this shortened week. Tuesday we have DD, JNJ, VZ, CSX, NSC, KSU, RF, TXN and GOOG. MCD, UTX reporting and AAPL reports Wednesday reports, with MMM and MSFT on Thursday, and PG and HON on Friday.

We also have the less influential BAX reporting this week. This is my Spiketrade I am stealing.  

I mentioned I was working with one of our readers in developing her trading skills. Well, Jerene outhomeworked me this last week and weekend. (That is hard to do.)

Her fundamental and technical analysis on about ten equities was impressive to say the least. She uncovered, what looks like an interesting swing trade for the next week or so.

Without her permission I will share some of her homework.

"Baxter International (BAX)

Forbes Earnings Preview: Baxter International

Baxter International (BAX) reports its fourth quarter earnings on Thursday, January 24, 2013.

The consensus estimate is $1.26 per share, up 7.7% from a year ago when Baxter reported earnings of $1.17 per share.

For the fiscal year, analysts are expecting earnings of $4.53 per share. Revenue is projected to eclipse the year-earlier total of $3.59 billion by 3.5%, finishing at $3.72 billion for the quarter. For the year, revenue is projected to roll in at $14.16 billion.

The company's profit has been on the rise for three quarters in a row. In the most recent quarter, profit increased 1.2% year-over-year. Going back two quarters, net income rose 7.5% in the second quarter and 3.2% in the first quarter.

A year-over-year drop in revenue in the third quarter ended a streak of revenue growth that had lasted three quarters. The 0.1% revenue decline in the most recent quarter can be compared with three quarters prior when it had been rising. It increased 1%in the second quarter, 3.2% in the first quarter and 2.7% in the fourth quarter of the last fiscal year.

The majority of analysts (66.7%) rate Baxter as a buy. This compares favorably to the analyst ratings of its nearest 10 competitors, which average 47% buys. That rating hasn't budged in three months as the average analyst rating of the stock has remained constant.

Baxter International develops, manufactures and markets products related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions One of Baxter's main competitors in the medical equipment and supplies industry is CareFusion (CFN). Other competitors in the healthcare sector include: Covidien (COV), CR Bard (BCR), and ICU Medical, Incorporated (ICUI).

StreetSmart - 6 Month - MACD -Black line went below the brown line on January 15 and is continuing down. RSI - on the hash mark line. Momentum is climbing. 1 Month - MACD -Black line is pulling higher than brown line but both lines are below the midway line. RSI - below the hash mark and leveling out. Momentum is climbing.

P/E is 16.34. Baxter Int has been on a roller coaster the past two years. Was on a rise in 2011 until Jul/Aug when it took a dive. Then it started going up until Nov 2011 when it dropped even lower than Jul/Aug. From there, it has been on the rise and is now trading at its 2 year high. Will it or can it go up much higher in a short period of time??

Earning to be reported on Jan 24."

Remember she did this much research on ten equities. I reviewed and confirmed the info and read the tea leaves as she did in the charts. I liked what we saw.

Then we worked together to determine an entry point of $67.00 or better. A protective stop of $65.40, and a target price of $71.00. That is a little higher than what Jerene suggested so we will be flexible. In essence we have almost 6% on the upside and 2.4 on the downside.

With this sector beings so strong and the company being so solid, it has the makings of a core investment should our swing trade work out.