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Archives for August 2010

Hit List 8-31-2010

By Filed Under: Hit List

The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.

0831-2010-TL
trading-list-legend
ZMH triggered

Open Position Notes:

LLL declined further today to reach new correction lows, and although it bounced from its worst levels of the day, I am very encouraged by this price action.  This trade has already reached Target 1 (where I closed 1/2 to book gains), and now it’s heading lower toward Target 2.  I’ve adjusted my stop for remaining shares again tonight, leaving it a bit of room to fluctuate if needed, but the new lows today bode well for this short.

INTU displayed some nice relative strength today, holding above support on a morning test (which again validated my current stop), and rebounding nicely to finish green on the day.  This one is holding up well, but needs to turn higher from this consolidation zone if it’s going to run.  I’ll stick with my existing trade parameters for Wednesday.

ZMH triggered a short sale today as it broke the lower trend line of a bearish wedge pattern at $47.30, and despite some afternoon market strength this one stayed nicely negative.  This is a fair start for this short sale, so I’m going to leave my trade parameters as-is for now while waiting to see some follow through in the coming days.

0831-2010-PF

Closed Positions:

No closed positions.

Bandit Broadcast for 8-31-2010

By Filed Under: Videos

Good evening StockBandits!

As is sometimes the case, today’s closing numbers don’t tell the whole story.  On the surface, it looks like a flat, uneventful day.  And on a net change basis, I suppose it was.  However, there was some meaningful action taking place between the bells, making for a productive session – particularly for the bulls.

Technically, this market is still struggling, which means the bulls are too.  But they had a chance to really let go today and didn’t.  We came right do the key levels I’ve been pointing out, including right here last night, with the S&P 500 tagging 1040 and the NAZ testing 2100 before bounces kicked in.  Those are the low ends of the short-term consolidation areas, which if broken, could bring a quick retreat to the July lows.  Instead, the buyers defended those levels for another day.  I doubt the bulls are resting easily here given they don’t have much breathing room, but they’re still present and that’s certainly worth noting.

With the indexes still currently range-bound, and with few charts poised for moves, my list for Wednesday is rather limited.  As the Labor Day long holiday weekend approaches, I’m expecting volume to remain light, and as a result I’m looking to keep my activity limited until this market proves it’s back on the move.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

broadcast-preview
The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: MMR, ISLN, ARCC, DO, PDCO

0831-2010-VS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CF, NFLX, APKT, MMR, INTU, ISLN, VMED, ARCC

Bearish Watch:

TIF, CRUS, ATK, LLL, CSC, JEC, MMM, V, SYK, NILE, URS, ZMH, PH, CNX, LM, APC, DO, COG, PDCO, ISRG, MAN

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Hit List 8-30-2010

By Filed Under: Hit List

The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.

0830-2010-TL
trading-list-legend
ZMH added

Open Position Notes:

LLL attempted to bounce in recent days, but it was doing so in a weak fashion with limited upside and poor volume to accompany it.  That’s just what I wanted to see, as it helped the stock consolidate for another move down without stopping me out on my remaining shares (1/2 position).  Today it turned lower with steady selling and increasing volume, and I’m now watching for follow through once again toward Target 2.  So far, so good.  I’ll look to make another stop adjustment soon if it continues lower from here.

INTU pulled back today within its consolidation area with the market weakness.  Two things are encouraging here, which are the fact that today’s dip came on incredibly light downside volume, and the fact that short-term support is still holding.  I’m doing my best to stay patient with this one, as if the market stabilizes, I do expect this stock to regain momentum quickly.  If not, my stop is defined and I’ll abide by it.

0830-2010-portf

Closed Positions:

No closed positions.

Bandit Broadcast for 8-30-2010

By Filed Under: Videos

Good evening StockBandits!

A test of the upside this morning was short-lived as Friday’s rally failed to find follow through.  Instead, the market gave back essentially all that was gained on Friday, and we now stand right near Thursday’s closing levels.  Pretty quick for a round-trip.

Such is the nature of trading ranges though.  We spent another day in the narrow consolidation zone which emerged last week, with short-term resistance levels (which were former support areas) holding once again.  Our attention now turns to short-term support levels which aren’t far below, such as 2100 on the NAZ and 1040 for the S&P 500.  A breakdown there and a close beneath those areas would likely spark additional selling to test the July lows in short order, so the next few days will be important for the bulls, to say the least.

The one thing today’s action had going for it was the incredibly light volume we saw.  Of course, this is the last week of trading ahead of Labor Day, which comes next Monday with the market being closed.  That’s historically the trader’s cutoff for summer, as volume tends to improve after that holiday with fall fast approaching.  So, it could be that traders are using this week to tend to other matters, like vacations to rest up ahead of the year-end push.  Time will tell, but although today’s slide kept the bulls’ confidence in check, technically they can feel slightly better about the lack of downside volume it came with.

We are getting some good back-and-forth action here, which means there’s a pretty significant tug-of-war going on.  Once we see a resolution to this short-term indecision, it could lead to a nice move.  For that reason, I’m considering plays on both sides of the market tomorrow, while for the most part keeping my timeframes rather brief due to the lack of overall volume.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

broadcast-preview
The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: NFLX, VCI, TSLA, ESI, PAY, EEV, APC, IOC, SEIC, ZMH

0830-2010-VS

Swing Trading Candidates:

ZMH continues to slide without being able to stabilize or bounce for more than a couple of days.  Here it’s sitting in a bearish wedge, which if resolved to the downside, could spark another wave of selling.  I’m looking to short this stock if the lower trend line at $47.30 is broken.  As with all swing trades, I’ll have my stop and target levels on the Hit List here inside the Hideout.

ZMH-08302010

Chart courtesy of StockFinder

Bullish Watch:

RIG, APOL, ESI, NFLX, TSLA, MCP, VMED, PAY, VCI, EEV

Bearish Watch:

BEN, HRC, ZION, IOC, ATK, LLL, MMM, V, SPN, MELI, CRL, LAZ, ZMH, MLM, PH, OSG, CNX, PRU, LM, SEIC, APC

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Hit List 8-29-2010

By Filed Under: Hit List

The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.

0829-2010-TL
trading-list-legend
No changes

Open Position Notes:

LLL bounced today with the market, and this one probably needs a bit of relief.  I’ve already taken 1/2 profits at Target 1, and have adjusted my stop for remaining shares to breakeven, so I’ll sit tight for now and let it consolidate to see if a secondary decline will arrive.  This one is a bit of a slower mover, so I’m doing my best to stay patient.

INTU turned back up today after some hesitation yesterday, finishing the week back above the descending trend line.  That’s encouraging – for now – but I’d really like to see some follow through in the days ahead.  This one exhibited some nice momentum just recently, so if after the mild pullback it can regain some strength, I like the setup for a favorable move.

0829-2010-PF

Closed Positions:

No closed positions.

Bandit Broadcast for 8-29-2010

By Filed Under: Videos

Good evening StockBandits!

Friday morning brought with it some lively action as right from the open stocks began to suffer.  The selling accelerated ahead of Bernanke’s speech, thanks largely due to a halt in INTC after they guided lower.  Once a bounce finally arrived, it marked the low of the session as a huge V-shaped recovery set in.  That carried stocks well into the green in short order, where they remained for the rest of the day.

The major indexes are now once again testing former support levels (which are now serving as resistance) from beneath.  To see a continued bounce from here would mean those levels get reclaimed, which would be positive on a technical basis.  In addition, last week’s downside helped to validate key levels of support, such as NAZ 2100 and S&P 500 1040, so we’ll be able to keep those pivots on the radar going forward as well.

For the week ahead, things could remain tricky.  We have a slew of economic data on the docket, and a long weekend to follow (with the market being closed for the Labor Day holiday on Monday, September 6th).  That gives us ample reason to stay on our toes, so it’s a time to keep stops in place and remain selective with new trades.

In looking through a ton of charts this weekend, I found a pretty mixed bag out there.  Some stocks are acting well, while others are still in poor technical condition but attempting to bounce or stabilize.  Those charts in particular will need more time to set up potential plays, but there are a handful of names I’ll be focused on for Monday.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

broadcast-preview
The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: PWRD, NFLX, JKS, AEO, MCP, ISLN

0829-2010-VS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RINO, NFLX, IT, JKS, AUXL, MMYT, DRQ, AEO, PWRD, INTU, MCP, SYMC, AKAM, INFA, ISLN

Bearish Watch:

CBOE, LLL, DGX, RIMM, CRL

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Hit List 8-26-2010

By Filed Under: Hit List

The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.

0826-2010-TL
trading-list-legend
INTU triggered

Open Position Notes:

LLL bounced today but held beneath my tightened stop loss, and ultimately finished negative on the day once again.  That’s encouraging price action for a stock that’s already proven to be weak, and even on an attempt at a bounce it’s struggling to gather any upside momentum.  I’m sticking with my existing trade parameters for now while waiting to see if this one can make a move toward Target 2.

INTU triggered a buy this morning as it cleared the steep trend line shown in last night’s Broadcast, but with the market reversing lower, it wasn’t able to hold the breakout.  It slipped back beneath the trend line by the closing bell, and now sits slightly underwater from my entry.  I’m going to keep my stop as-is for now, and may look to make an adjustment after the weekend if Friday’s price action is encouraging.  So not the best start, but I’m going to give it some room to fluctuate for the time being while waiting to see if it can make another attempt at a move higher.

0826-2010-PF

Closed Positions:

No closed positions.

Bandit Broadcast for 8-26-2010

By Filed Under: Videos

Good evening StockBandits!

Yesterday’s bounce carried over into this morning as the market lifted higher in the early going.  However, the strength was short-lived, and it wasn’t long before it was completely given back.  The indexes trended lower intraday from there, finishing near their worst levels of the day and back below Tuesday’s closing levels.

Today had been shaping up to be a potentially pivotal day, as a continued bounce would have offered further hope of a higher intermediate-term low.  Instead, the daily charts of the indexes now have a consolidation appearance following a selloff, which could quite easily bring downside continuation if the lows of the week are penetrated.

All eyes will turn to the July lows if we see this consolidation resolved to the downside.  I would expect to see some acceleration in the selling pressure if that occurs, which means the technical picture faces further deterioration in the short term.

With tomorrow being a late-summer Friday, as well as the fact that we have the GDP number in the pre-market, consumer sentiment shortly after the bell, and FOMC Chief Bernanke speaking at 10 ET, the market should have a lot to digest ahead of the weekend.  Stated otherwise, anything is possible.  As a result, I’ll be focused on just a handful of day trade candidates, waiting for more charts to set up for swing trades in the coming days.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Friday.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

NAZ-08262010

Chart courtesy of StockFinder

SP500-08262010

Chart courtesy of StockFinder

RUT-08262010

Chart courtesy of StockFinder

DJIA-08262010

Chart courtesy of StockFinder

VIX-08262010

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

NFLX-08262010

Chart courtesy of StockFinder

MMYT-08262010

Chart courtesy of StockFinder

TSLA-08262010

Chart courtesy of StockFinder

CBOE-08262010

Chart courtesy of StockFinder

V-08262010

Chart courtesy of StockFinder

Bullish Watch:

VIT, MAC, CF, NFLX, SLW, IT, MMYT, TSLA, FOSL, PWRD, INTU

Bearish Watch:

LNCR, DGX, MLM, ISRG, RIMM, CBOE, DLB, LLL, MON, V, CRL, VSEA

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

Hit List 8-25-2010

By Filed Under: Hit List

The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.

0825-2010-TL
trading-list-legend
LLL Target 1 hit & stop tightened, PLCM stopped, INTU added

Open Position Notes:

LLL fell further this morning to hit Target 1 at $68.80, allowing me to close out 1/2 my position for a fair gain of 3.7%.  The stock has come under persistent pressure for the past several sessions, so to see today’s rebound kick in is not surprising.  It was rewarding to see Target 1 hit right on the nose today, as that did mark the low for the session, and I also liked the fact that this one didn’t rally much beyond the flat line.  Volume was light as well.  That points to a continued presence of some sellers, and a lack of buyers, plus this stock is still technically broken.  I’m going to stick with remaining shares with an adjusted stop loss of breakeven.  If it can move further in my direction, I’ll continue to adjust my stop.

0825-2010-PF

Closed Positions:

PLCM was a setup I really liked the looks of a couple nights ago, as it had broken support and bounced back up to test that zone without reclaiming it.  There was also a well-defined wedge pattern, and I had intended to initiate a short sale upon a break of the lower wedge trend line.  The difficulty in setting up a swing trade in a gap-prone market like this is that sometimes an intended entry and an actual entry can greatly differ.  That can be offset by reducing position size, which I did by 1/2, but it still results in inferior entry prices and a change in the risk/reward profile of the trade.  So when PLCM triggered an entry on Tuesday by way of gapping through my intended trigger price, that was a known risk.  I aggressively tightened my stop last night as another way to offset the initial risk (in addition to the reduced position size), and with today’s market reversal back up I was stopped out of this position for a manageable 2.3% loss.  The reduced position size and limited loss definitely minimized the pain, but the fact remains that a true trigger through an intended entry will still offer the best scenario for swing trading.  I’ll stand aside from this one for now, as it doesn’t seem ready to roll over for a secondary move just yet.

Bandit Broadcast for 8-25-2010

By Filed Under: Videos

Good evening StockBandits!

The indexes got off to a poor start today with some early weakness, but buyers emerged as the S&P 500 tested the 1040 level I pointed out here last night.  The NAZ also found support at the 2100 area listed here last night, as did the RUT near 587.  Clearly, we aren’t the only ones watching those levels, and today’s respect of those areas adds validity to them.

Today’s weak start and finish in the green – even if it wasn’t a big advance – signals short-term fatigue for the pullback which started last week.  How far a bounce carries remains to be seen, but in the short term, I’m still expecting the bounce to at least fill Tuesday’s gap (as mentioned here last night).  That would mean a test of the broken support zones from beneath, and would give us a very good idea for whether the upside has any staying power.

It is still a time to remain vigilant and cautious, as anything’s possible.  We could see things weaken again in a hurry, and find ourselves facing the July lows in short order.  On the other hand, if today’s low is able to hold, it could eventually prove to be an intermediate-term higher low (relative to the July low), which would be a very positive technical event for this market.  More time will be needed before we know for sure, but if anything it adds importance to the next few days and weeks of action – even if it’s historically a “slow” time for the market ahead of Labor Day.

I’m looking to maintain high levels of cash for now, focusing primarily on intraday trades with some occasional overnight positions (adding one candidate tonight).  The market’s been weak, but it’s starting to bounce, so my watch lists are rather thin at this point.  It’s a bit late to be shorting for this particular move, and yet there are very few stocks exhibiting bullish price patterns.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

NAZ-08252010

Chart courtesy of StockFinder

SP500-08252010

Chart courtesy of StockFinder

RUT-08252010

Chart courtesy of StockFinder

DJIA-08252010

Chart courtesy of StockFinder

VIX-08252010

Chart courtesy of StockFinder

Swing Trading Candidates:

INTU jumped higher last week and has pulled back quietly over the past few sessions with declining volume.  The breakaway gap has been able to hold on the dip, and this one could regain momentum quickly if it’s able to turn higher from here.  I’m watching for a push beyond the trend line at $42.90 to trigger a buy, and will have my stop and target levels on the Hit List for this swing trade.

INTU-08252010

Chart courtesy of StockFinder

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

IT-08252010

Chart courtesy of StockFinder

TSLA-08252010

Chart courtesy of StockFinder

FOSL-08252010

Chart courtesy of StockFinder

CRM-08252010

Chart courtesy of StockFinder

Bullish Watch:

RINO, WLP, NFLX, SLW, IT, AEO, TSLA, FRG, FOSL, CRM, PWRD, GG, LAZ, ANV, INTU

Bearish Watch:

LLL

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

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