Good evening StockBandits!
The highly-anticipated jobs report on Friday before the bell was indeed a market-mover, causing a big gap up once the opening bell rang. The NAZ gapped roughly 30 points on the open to the upside, and the DJIA was up triple digits in no time. The NAZ followed the blue chips by finally breaking out above recent resistance at 2205, but traders sensed an opportunity to lock in profits so that’s exactly what they did. By mid-day, all the early gains had been erased, and for the 3rd straight session the breakout attempts failed as the S&P 500, DJIA and NAZ each closed back under their key levels of 1113, 10,500 and 2205, respectively.
The fact that the market is tagging new recovery highs yet again is certainly proof that the buyers are still running the show. However, the failure to close at new highs above resistance zones is a bit concerning and warrants continued caution. Performance anxiety in the market brings a herd mentality to the forefront of the action, as new highs will inspire more buying. However, it’s been quite a run and the institutional money certainly will be quick to lock in a solid 2009 at any hint of weakness, making for a little bit of a skittish environment.
No doubt it’s tricky out there, but such is the case with a market that’s seeing a battle take place (read: trading range). It’s simply a cue for us to stay selective and on our toes, taking the best setups as they come along. That’s always the aim, so I’m planning to do just that as we head into a brand new week.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: SWSI, GD, UNM, CEDC, NFX, EQT, ACL, NSC, TRW, SMN, LFT, AIG, XOP, MTL
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
ACL, DLB, LFT, SNIC, VMED, CHKP, MMM, FDX, CREE, H, SLH, DTV, NSC, ANV, TRW, SMN, SWSI, GD, TRA, ATHR
Bearish Watch:
WFMI, UNT, UPL, RRC, ILMN, UNM, PEET, AIG, FWLT, XOP, MTL, SPN, CEDC, ECA, SII, NFX, EQT
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.
