Good evening StockBandits!
Last week we saw a positive start which took the market to its best levels of the year as the S&P 500 reclaimed the 1100 level on a closing basis. The upside saw no follow through, however, and the week ended in a different manner as selling pressure erased the early gains.
The downside wasn’t anything major, but it was enough to remind us that the market still hasn’t seen much of a correction throughout this entire rally. The pullbacks have remained very shallow and brief, and the dip-buyers have stepped in repeatedly to offer support. Friday was another example of that as we saw yet another afternoon bounce which diminished the losses of the day. The trend remains up, and that deserves our respect, but we need to stay mindful of the fact that at some point we’ll see harsher selling kick in.
For the week ahead, we’ll likely see lighter volume as traders step away for the Thanksgiving holiday, and that’s worth noting. The market will be closed on Thursday and only open for a 1/2 day on Friday, so it’s certainly a time when trading smaller size and keeping timeframes shortened is warranted given the lighter overall participation we’re likely to have.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: CAAS, TSTC, AXP, REV, PCLN, NANO, STT, UPL, CLR, FE
Swing Trading Candidates:
FE has settled into a descending triangle pattern as it trends lower from its Sept/Oct double top pattern. In the near term, the bounces have carried to lower levels, while short-term support is being tested. A breakdown through support at $41.40 will trigger a short sale for me as a swing trade.
Bullish Watch:
BBY, REV, FCX, HOLI, GOL, RAI, AXP, TX, PCLN, CAAS, HEAT, DLB, MON, NANO, GAP, PRGO, MEE, LNCR, RGLD, HNT, CGA, GLD, LIHR, LNY, CML, TYC, CCI, LFT, TSTC
Bearish Watch:
WFMI, FE, NTRS, UNT, OIS, ERTS, STT, VMC, BX, CLR, UPL, ZION
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
