Archives for March 2011

Good evening StockBandits!

The market was quiet today ahead of tomorrow’s highly-anticipated jobs report, and as a result we saw mixed results and minor net changes for the indexes.  The NAZ and RUT were able to tack on a few points, while the S&P 500 and DJIA gave up just a little ground.  Volume picked up with today’s action, although it didn’t translate into anything meaningful on the technical front and was likely just attributed to end-of-the-quarter activity.

With tomorrow’s nonfarm payrolls gathering all the attention in the premarket, it could quite easily produce a significant gap on the open.  Toss into the mix the recent tendency (although March was an exception) of the market to tack on gains on the first trading session of the month, and we could see a sizeable move.  The indexes are still stretched in the near term, so a pullback from here wouldn’t be a big negative (even for the bulls).  However, the current momentum is to the upside, so it’s important not to go hunting shorts simply because we’re overbought.  Remember, we could stay that way for some time.

My plan for Friday will revolve around a handful of day trade candidates in stocks which look ripe for short-term dips or rips.  This is still a tricky environment at the moment, so I’m still looking to limit swing trades to those setups which I feel offer good risk-reward profiles and which are not extended.  All else I’m simply looking at as rentals, whether on the long or short side.

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:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MTZ, ARBA, TEX, MGA, CAM

Swing Trading Candidates:

NONE TONIGHT

[table “16” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The seemingly nonstop rebound off the recent lows continued today with a strong open being followed by additional buying.  That took each of the major indexes to new recovery highs, and in the case of the RUT to new 52-week highs.

Volume improved slightly with today’s action, although it remained below-average.  That has been a glaring technical concern throughout this bounce, yet the buyers are still driving prices higher – whether bulls putting capital to work or bears in desperate need of covering short positions.

The bounce is approaching melt-up pace at this point, but it’s important to remember that even though price is quite stretched here, some stocks will still see rotation in the coming days.  The trick to playing a bounce like this is to participate in names which aren’t yet extended, so that’s my plan for new buys heading into tomorrow.  I’m still going to keep a close eye on potential short setups, because at some point this rally will relent, but for now it seems traders are doing their best to get positioned for another possible start-of-the-month advance (which could occur Friday) like we’ve seen so many times recently.

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:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MEE, STJ, MCHP, ICO, MTZ, PXP, CVC, SM

Swing Trading Candidates:

SM continues to base beneath resistance while maintaining its uptrend.  A breakout with a push through resistance at $75 could free up this one to move higher, so I’ll be going long if that level is cleared for a swing trade. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “15” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Monday’s late-day selling carried over into this morning as a minor downside gap was followed by some additional weakness.  However, it didn’t last long as the lows of the day were set about 15 minutes after the open, and from there the market never looked back.  The morning deficit was quickly erased as each of the indexes moved into positive territory, where they stayed for the remainder of the session.

Today’s downside head-fake no doubt has some bears trapped tonight, as the recent V-shaped rally was seemingly set for at least a short-term pullback after weak finishes Friday and Monday and a poor start today.  Follow through to the downside failed to unfold, and instead we saw the indexes tack on gains just shy of 1%.  We’re now back facing some important levels, with potential to climb back above the prior bounce highs.  The RUT and DJIA are both not far from 52-week highs, but they’ll need the participation of the NAZ and S&P 500 to make meaningful moves going forward (as usual).

Despite how far this market has carried in just two weeks off the recent lows, tonight there are a lot of charts exhibiting bullish behavior.  But just as it wasn’t advised to short two weeks ago after a sizeable selloff, this is an equally difficult spot to be making new buys.  Some stocks have great setups with risk/reward that justifies long-sided entries here, provided that risk is kept in check just in case we see selling return.  Overall though, it’s a trader’s market and we have to expect some shifts of direction while caught between the lows and highs of the past few weeks.

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:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: WNR, JBHT, TRN, CCL, MGA, MDR

Swing Trading Candidates:

MDR has pulled back from its recent high, and has kept its uptrend intact.  Price is now resting just beneath a trend line, which if cleared at $25.10, could set this one free to move higher.  I’ll be using that level as a trigger for a buy. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “14” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following a couple of rather lively weeks, the market started out the new week on a rather quiet note today.  The indexes never saw any real momentum arrive in either direction, and instead spent the majority of the session in a rather choppy trading range.  In the final hour, the positive tone and minor gains from this morning were erased as selling took the market negative for the day.

Today’s sluggish action and poor finish points to some short-term fatigue, which isn’t surprising after Friday’s finish off the highs.  The indexes have carried a long way since the lows of just two weeks ago, and traders are at a bit of a standoff waiting to see which will continue, the bounce or the correction.  Some stronger volume could have offered a bit more clarity on that today, but instead the verdict is still out.  The next few days should prove noteworthy as we see which way this all plays out.

More patterns are emerging for plays on the daily charts, which I’m encouraged by.  I am eyeing several plays for Tuesday’s session, including longs and shorts and day and swing trades.

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:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: JBHT, STJ, PCX, GE, MAN, RCL, MET

Swing Trading Candidates:

RCL has worked its way steadily lower in recent months, and now rests on key support.  A breakdown at $40.40 will trigger a short sale for me as this one heads back down toward the unfilled gap from last October. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

MET has bounced back from its lows of two weeks ago, but volume has failed to confirm the bounce.  Additionally, we have several lower highs already in place, reminding us that until proven otherwise, this looks to be a bounce within a downtrend.  I’m looking to short this one if it breaks the rising trend line at $44.70, expecting a move back down toward the recent lows. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “13” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major averages continued to rebound last week, showing some upside follow through to the previous Thursday and Friday bounce attempt from the March low.  The indexes went 4-for-5 on the week, making new recovery highs on Friday.  At their best levels on Friday, the indexes had rallied 5-6% from their lows of just 7 sessions prior, leaving little doubt that the bounce has become short-term extended.

Adding validity to that claim are the lack of recent upside volume, as well as Friday’s finish well off the highs.  We’ve seen consistently light volume over the past several sessions, showing us on the daily charts that as price continues higher, it does so with limited participation.  And Friday’s finish off the session highs may have merely been profit-taking ahead of the weekend, but the fact remains that many stocks are short-term stretched, and therefore ripe for some rest.

At this point, trading the long side is extremely difficult to trust for any timeframe but day trades.  We know many stocks (and the market) have become extended, that prices have risen accompanied by light volume, and that Friday’s turn from the highs may point to some fatigue setting in.  Additionally, we still have the remaining possibility of another lower high forming on the daily charts, particularly if prices turn lower from here without threatening the early-March highs.  It’s still a time for caution, as well as an open mind with more changes of direction likely to come our way in the weeks ahead.

Traders will closely monitor the news flow this week for clues, knowing the market has responded often of late to the headlines.  As a result, it’s in our best interests to stay on our toes, knowing the market momentum can turn on a dime and the correction can resume.  I’m planning to keep my trading timeframes short for Monday, but am open to adding some overnight exposure if the right setups present themselves in the coming days.

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:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CBE, BEXP, CIE, FFIV, RCL

Swing Trading Candidates:

NONE TONIGHT

[table “12” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

An upbeat start this morning saw a brief attempt at a gap fill, but the buyers prevailed and the market held its ground in positive territory.  From the morning lows, the market was able to trend quietly higher throughout the session, going out just a short distance from its highs by the closing bell.

Yesterday’s upside reversal therefore found follow through with today’s action, taking the indexes each closer to their respective descending trend lines.  The one standout in that regard tonight is the DJIA, which cleared its descending trend line today.  The trend lines aren’t the ultimate level to watch, however, but merely the next ones to approach.  Beyond them still stand the prior bounce highs, which were formed on the rebound from the initial pullback from the February peaks.

The market is showing some momentum right now, despite the V-shaped recovery from the recent lows.  Technical traders like myself see this as a high-risk area to be initiating new buys, but as of yet we’ve not seen the bounce run out of gas.  My plan is to respect the price action and take a few short-term plays as they come along, particularly since there are several technical reasons to avoid initiating new buys for anything but quick flips.

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:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: TSO, EMN, URI, CVI

Swing Trading Candidates:

NONE TONIGHT

[table “11” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff