Good evening StockBandits!
Intraday saucer-like price action today left the indexes little-changed from where they began, as morning weakness was followed by an afternoon recovery. The NAZ suffered a 1% loss (primarily due to ORCL’s weakness), while the other indexes added a few points. All in all, it was a solid day of digestion after Tuesday’s rip higher.
The wedges remain in effect for now, and that’s keeping prices somewhat contained in each of the indexes. However, the RUT is very close to a breakout, and the S&P 500 and DJIA aren’t far behind. We may yet see an upside breakout take place before 2011 draws to a close, but with light volume very likely these next few sessions, some continued churning action between the narrowing trend lines wouldn’t be an outlandish bet.
For the rest of this week, I’ll be taking a conservative stance in light of the fact that I’m expecting volume to taper off significantly as the week progresses toward Christmas (Sun). I’ll be focused primarily on intraday plays as a way to capture some short-term moves while effectively managing risk in what’s likely to be a reduced-volume tape.
As a reminder these final days of the year, several other factors are at work which aren’t present the rest of the year. Those include portfolio managers exiting positions and adding others for the year-end books, tax-related selling for this calendar year, and of course declining volume at the end of the year as traders stand aside and tend to other matters (holidays with family and simply taking time off to gear up for 2012). With that in mind, it’s a good time to trade lighter and stay selective – I certainly will be.
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: VPHM, NBR, MAN, GMCR, ROK
Swing Trading (muti-day) Candidates:
NONE TONIGHT
[table “191” 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.
DLTR ACI and BTU also on my list – bought some ACI yesterday together with XOM, BGS on this mini move up
Keep an eye on PRIM and maybe AMED catches your – not the best one, but similar to the coal stocks
Good setups there, coal stocks confirming their advances of the past couple days, good short squeeze potential with them given recent weakness. DLTR acting hesitant to go, I will likely remove it from the Bullish list until it exhibits better strength. Careful with PRIM overall volume is pretty light, just trade smaller there. AMED downtrend still intact (lower highs on daily chart), but seems to be attempting to stabilize since early-Nov…worth watching. Thanks for sharing!