Good evening StockBandits!
An upside morning gap was sold hard today as early gains quickly eroded and the indexes (sans DJIA) turned red yet again. The weakness didn’t hold for long though, as a mid-morning rally provided a lift from the lows before a successful test of them set in soon after lunch. That resulted in a higher low intraday, prompting short-covering and buying pressure which sent stocks off to the races into the closing bell.
While today’s gains were solid, it’s still a very difficult market to trust from a technical standpoint. We just saw key support zones tested late last week after quickly becoming short-term oversold, and what we’re seeing at the moment can only be viewed as a bounce from support until more technical evidence comes along to suggest anything else. The indexes are still range-bound, which is to say that momentum will be fleeting and changes of direction are still likely until that changes.
Many individual stocks marked wide-ranging bars today which may be the start of some reversals to the upside, but there remains very little to point out in the way of new trades. The volatility of late is simply keeping the charts extremely sloppy, so bases aren’t able to build and tradable patterns are therfore few and far between right now. As such, it’s a great time to maintain high cash levels while we wait to see which way all this confusion is resolved.
For those who may have experienced issues with the site today, I’ll explain the cause of it in the video, but thank you for your patience. It was not on our end and therefore unavoidable, but thankfully everything appears to be fully restored for now and we do not expect further issues related to it.
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: VRUS, CERN, PSS, MTL, TZOO, RCL
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “132” 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.
