Archives for July 2011

Good evening StockBandits!

Early optimism gave way to some quick profit-taking this morning as a gap higher on earnings news left the market a bit stretched to the upside.  The selling took the market negative, where it stayed for most of the session.

Yesterday’s breakout was important in that it broke the pullback phase we had been in since the early-July high was established.  The thrust of the move was enough to propel the NAZ and S&P 500 both well beyond the upper trend lines of the flag and pennant patterns they had been building, which was meaningful for today’s session.

To see a minor dip today after yesterday’s sizeable surge higher is actually a healthy way to digest the move.  Not much ground was given back, and yet immediate follow through wasn’t as imperative since we had cleared the trend lines by more than just a tiny amount.

Going forward, we will need to see follow through, and sooner rather than later would be ideal for the bullish case.  So while we didn’t get continuation higher today and positive news gave way to some selling, it was a minor dip and the bulls didn’t allow the market to give up a lot of ground.  I’ll be keeping a close eye on things in the next couple of days to see if these breakouts can hold, but I’m not alarmed by today’s quick and shallow retreat, as it really appears to have been a day of rest for the market.

We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade. Amateurs like to gamble on earnings outcomes, but professionals avoid that risk since it can’t be managed effectively. Keep that in mind these next few weeks! I like to check both EarningsWhispers and Yahoo Finance. No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.

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: NTES, VHC, ATI, MOBI, PANL, DANG, P, ANR

Swing Trading Candidates:

NONE TONIGHT

[table “89” 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!

Yesterday’s afternoon bounce from the lows of the session proved to be a turning point as stocks vaulted further away from their short-term lows in today’s session.  An opening gap to the upside was followed by plenty of additional strength, taking the indexes up through their descending trend lines on the daily charts.

This puts the market in an excellent position to rally further, but follow through will be the key.  Today’s spike higher was the kind of kick-start needed to break free of the short-term pullback phase we have spent the past several sessions inside of, but one day does not a trend make.  It may very well be day 1 of a new leg higher though, in which case the indexes would have ample room to run.  I’ve noted lately how the descending channels and falling wedges were creating bull flags and pennants, and today those patterns were confirmed on the indexes.  I’ll point out the next levels to keep an eye on down below in the charts.

In looking through many charts tonight, there are quite a few which look to be turning up from potential higher lows.  The June lows were not quite tested for many stocks, giving us potential higher lows with the July pullback and this subsequent turn back up.  Should this technical development be embraced going forward, we could see this market back up at the upper ends of the ranges in short order.

The setups in which I’m most interested for tomorrow’s session are day trades.  I’m holding 4 swing positions on the long side tonight, and don’t mind adding more, but with the setups which look ready for imminent moves from here, there were interfering earnings dates as well as risk/reward profiles which just didn’t look suitable for swings.  Instead, I’ll look to take them as day trades with 1% stops from entry and look to ride intraday momentum for 2-4% gains if they trigger tomorrow.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “88” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Continued concerns over debt issues both abroad and domestic prevented the buyers away this morning, leaving stocks with a downside gap to start the new week.  That was followed by additional selling pressure as the major averages slid to new pullback lows from their early-July highs.  Prices were able to stabilize somewhat mid-day, which caused some quiet buying in the afternoon.  It wasn’t much, but it did lift the market off its worst levels of the day, cutting the NAZ losses in half by the closing bell.

The news flow is combining with the technical pullback right now, and traders generally aren’t showing much confidence on the long side.  With economic uncertainties as well as it being right on the front end of earnings season (another uncertainty), everyone seems to be taking a lay-low-and-wait approach.  That’s not necessarily a bad thing, as it is a bit of a messy picture right now, but it’s making it more of a day trader’s market at the moment than anything else.  Once the dust settles a bit, we should see many more opportunities surface for multi-day plays.

Last night’s plays yielded few entries today as they were primarily long-sided candidates.  As such, it was a good reminder to wait for triggers before taking action.  Anticipatory plays occasionally have their place, but in foggy conditions they’re more of a gamble and a guess than a worthwhile strategy.  Keep that in mind as the market continues to grapple with headline risk and worry.  If there’s anything the market hates, it’s uncertainty.

Today’s decline did a little damage to some of the charts which were starting to build some bullish patterns (flags and pennants mostly), but there are still some trying to set up.  The key in gauging pullbacks is to see if the pace is accelerating or being maintained.  If it’s the latter, then descending trend lines remain valid.  If it’s the former, then the pattern is quite easily negated and therefore should be watched for a new setup.

There are only a handful of new setups tonight, but I’ll take them if they go tomorrow.  The Hit List still contains a couple of stocks which haven’t triggered as well, so they remain on my list for potential plays and I’ll take them if they cross the entry levels listed there.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “87” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A gap higher on Friday was met with some initial selling as stocks settled into a choppy range for the session.  Some level of strength was maintained though, and with a late push we saw the market go out within spitting distance of the day’s highs.

On the week, the NAZ and S&P 500 each gave up more than 2%, which was actually healthy from a technical standpoint.  The previous two weeks had seen nearly straight-up ramps which left the indexes very stretched to the upside.  The sharper a move gets, the more reversal-prone it becomes, so some profit-taking like we’ve seen actually opens the door for the market to possibly reset for another advance.

The biggest challenge of the past several weeks has been the erratic price moves and the effects that has had on the charts.  That has prevented individual stocks from setting up the kinds of bases and rest phases needed for swing trading setups, but now with some continuation patterns appearing in the form of flags and pennants, more potential plays are beginning to surface.

I’m encouraged by that, as it brings another timeframe into play rather than just day trades.  I don’t mind the cash-flow nature of day trades, but ideally like to have capital at work across multiple timeframes as a way to participate on more moves.  That also adds a layer of diversification for trading, so I’m hoping to see more swings going forward no matter which way the market heads.

We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade.  Amateurs like to gamble on earnings outcomes, but professionals avoid that risk since it can’t be managed effectively.  Keep that in mind these next few weeks!  I like to check both EarningsWhispers and Yahoo Finance.  No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.

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: TZOO, TSCO, P, HOG, GSVC, FIO, DE, WDC, WLP, PPO, CROX, CAM

Swing Trading Candidates:

PPO pulled back from its recent high on light volume, and now has a shot at a turn back up if it can clear the trend line.  I’ll be using that as a pivot for a buy, getting long if the stock clears $69.20 on the way back up.  Earnings are due out August 1st according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

CROX has pulled back quietly but held its uptrend quite well, and now could turn back up for another leg higher.  I’ll be going long this stock if it can cross the trend line with a push through $26.60.  Earnings are due out August 1st according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date.  As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

CAM broke through a multi-month downtrend line with good upside acceleration, and has pulled back quietly to digest that move.  It now looks ready for another push up, so I’ll be a buyer if this one can clear $50.75.  Earnings are due out July 28th according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date.  I’ve set only 1 target for this play on the Hit List, but if earnings are approaching and the stock seems to be slowing down, I may look to make an exit prematurely (along with an intraday update via Twitter & email).  As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “86” 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 early upside pop gave way to a gradual slide lower today as the indexes surrendered their morning gains to ultimately post another decline.  By mid-day, each of the averages had moved into the red, and they never recovered.  In the end, the NAZ shed more than 1% while the S&P 500 gave up roughly half of that.

The bull flag-like patterns I outlined last night saw the upper ends get tested early in the session, but by day’s end it was the lower trend lines which were being threatened.  That puts the market in an interesting spot heading into tomorrow if these flags are going to be able to continue building.  With it being a summertime Friday as well as an option expiration day, anything’s possible.

If prices are able to stabilize soon, then some kind of a higher low would be formed as a result.  That would offer a potential secondary advance in the weeks ahead which might ultimately get the market out of its very wide multi-month trading range.  However, if that doesn’t happen we should still see opportunities for moves in both directions as the range boundaries are respected.

At this point, we’re in a short-term rest phase until further technical evidence suggests otherwise.  The recent sharp rally is being digested and we’re seeing some profit-taking, but the verdict is still out on whether or not this is yet another lasting reversal.  Volatility remains elevated, and we’re still seeing some wide-ranging days and frequent overnight gaps.  Rest has been extremely limited of late. For that reason, there still isn’t much to consider for multi-day trades at this point (since so few stocks have been able to base), although there is one candidate tonight which I’ll review shortly.  Otherwise, my focus for tomorrow will be on grabbing short-term moves.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups.  The videos are not going away, but I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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

Swing Trading Candidates:

MPEL remains in a solid uptrend but has put in some needed rest of late.  This has formed a very clean ascending triangle pattern, so I’m watching for a breakout to get long.  This stock has essentially ignored the broad market movement and continues to move to its own beat, which is why I don’t mind taking a breakout trade in the midst of what has been a range-bound market environment.

Chart courtesy of TeleChart

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “85” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff