Good evening StockBandits!
Three of the four key indexes finished in the red today, some for the third consecutive session, but it was a positive day in terms of the price action we saw. Following Monday’s breakout, we saw a multi-day dip as profit-taking erased the gains from the start of the week. This translated into the oft-referred-to “backing and filling” as today we saw the Monday gap get filled and then an afternoon turn higher which meant nearly a complete intraday recovery.
The 3-day dip was able to hold some important levels, which is positive, and now sets the stage for potentially another rally off a pullback. We’ve seen pullbacks get bought with great aggression in recent weeks, so we should see pretty soon whether or not this one fits the same mold.
Tomorrow is of course a Friday and the last day of the quarter. Most of the window-dressing type action has already been done, but we’ve seen a tendency of late for the start of the month to be positive (5 straight). With Monday kicking off a new trading month, and with traders often doing their best to get ahead of moves, we could see some strength tomorrow as potentially some traders anticipate strength come Monday.
Some continued basing action would certainly benefit a number of individual stocks, but no telling whether or not we’ll get it. I’m going to take it one day at a time and focus on the best setups as usual. For tomorrow, that means a few day trade candidates and one revised swing setup.
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: JAH, STLD, KORS, OPEN, FSLR, NIHD
Swing Trading Candidates:
NIHD was listed here 2 nights ago with a narrowing consolidation, but the stock has continued its short-term pullback and the trendlines needed modifying. As a result, and with the stock not yet having triggered an entry, I’ve modified my levels for this trade and therefore wanted to revise the listing. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
