Good evening StockBandits!
This morning started with some modest optimism as stocks gapped higher. That early strength quickly faded though, and the indexes tested the downside in the opening half hour. However, just as we’ve seen so often, the dip-buyers stepped in to offer support as stocks turned higher for the remainder of the day.
Today’s upside took each of the major averages to new recovery highs since the March low, reminding us yet again of the uptrend we find ourselves in. The short-term bounce from the early-October low is still unfolding, despite the fact that many stocks have become short-term extended. At some point we’ll see some rest or profit-taking kick in, but for now the market is still on the northbound train.
Given tonight’s earnings reports in tech heavyweights AAPL and TXN, we could quite easily see another gap up tomorrow morning.
Let’s get to tonight’s video.
The Bandit Broadcast for 10-15-2009 – Click to Watch!
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Video Stocks Discussed: WHR, CTXS, AMG, CERN, DWA, YONG
Swing Trading Candidates:
YONG is a new stock which has been acting quite well with some recent stair-step uptrending taking place. This one has consolidated near its highs for the past few sessions, and could easily break out again. I’ll be a buyer as the $12 mark gets broken.
Bullish Watch:
WHR, YONG, GDP, THC, ACI, CEDC, PQ, CTXS, RL, AMG, CCI, APH, ARST, BLC, CERN, PCP
Bearish Watch:
MAC, CNW, BKE, DWA
The Hit List will be coming out soon with discussion on open positions, stops and targets, so be sure to watch for it.
Good evening fellow bandits,
Does anyone else use Trade-Ideas (TI)? I’m looking for new ideas to better utilize the program. With a full-time job I don’t get to day trade as much as I used to. Are there ways to use TI to assist us in finding “bandit trades”?
I appreciate any thoughts.
Thanks
Hey Omar,
Others here might have more specific ways they use Trade-Ideas, and I hope if so that they’ll share them. But here’s the primary 3 ways I use it:
– Set up a ‘bullish’ watch list and take note of stocks hitting new highs on the day
– Set up a ‘bearish’ watch list and take note of stocks hitting new lows on the day
– Take note of the ‘Relative Volume’ column early in the session to note stocks which are seeing unusual trading activity, then watch for patterns to emerge on the intraday charts of those stocks.
It’s a great product, I’ve been a user of it for several years now (2003 I believe).
Jeff
DWA Weekly chart shows a bull pennant consolidation. It is at support, but there was a gap up a few weeks ago which was closed a week ago. That could be a shakeout in which case this could go higher quickly. I like the chart for a short (day) too, but caution is needed and a stop essential. I think to also watch if mkt is strong, I would be extra careful as a short, but also can watch for a long play above the trendline on the weekly chart
As a day trade, the stock has good risk/reward if it undercuts the short-term rising trend line shown in the video. I also don’t eye the weekly charts often at all, and in fact will ignore them entirely for day trade candidates.
For those considering it for any other timeframe, I’d say just be aware of the downtrend line along the highs starting from the 9/15 top. If that gets cleared, it could pop, but for a day trade I’d be long gone by that point.
Jeff
Thanks Jeff,
I also like a sector etf watch list. If I see something interesting happening within a sector I can then look at individual stocks within that sector for patterns and volume.
O-man,
Open a new Trade Ideas window and add this to it (from the ‘Collaborate’ feature):
https://www.trade-ideas.com/View.php?O=600000000000000000C0003_1D_0&WN=Sectors&SL=12
Just a basic sector alerts window for strength & weakness, good for a starting point.
Jeff