Good evening StockBandits!
Thanksgiving week is typically extremely light in terms of volume, but it can still have a bullish bias to it. Monday’s action was lackluster, but today we got a subtle rally as some morning shakeouts never produced worry and stocks again found a bid. The strength which followed didn’t likely impress anyone, but it was yet another example of the bulls simply taking care of business in a tape they’ve steadily dominated for 7 weeks running. Despite a late-day dip from the best levels of the session, today’s upside created more new highs across the board, leaving little doubt about which camp went home smiling. Surprisingly, volume actually improved a bit today as tech leaders like AAPL, GOOG, NFLX and LNKD each pressed higher to help the NAZ close solidly beyond 4000 for the first time in 13 years.
As we head into Wednesday’s session, there are a few things to point out. The first is that I’m not expecting much. It’s the day before Thanksgiving, which is not only the most heavily-traveled day of the year in this nation, but a big reminder that attention spans are elsewhere – as they should be. As the day progresses, traders tend to head for the exits early, which is to say that the fuel for lasting moves may be harder to come by.
There also aren’t a lot of great setups out there tonight, so I’m sticking with just a small handful of cashflow candidates as single-day plays. It’s easy to force trades on a week like this if you’re home from work and have more availability to trade, but being overzealous can bring costly mistakes when placing trades out of boredom. If you’re bent on trading, just be sure to have the discipline to stick with your setups, wait for your levels, and be smaller given the reduced volume this week.
Lastly, each of us have much to be thankful for, and I hope this Thanksgiving week finds you with much to appreciate. I’ve found that there is always more to be thankful for when I simply stop to consider all the ways I’m blessed. We’re blessed to live in a land of freedom, with opportunities to better our situations on a regular basis. I’m thankful not only for my health and my family, but for the opportunity to serve you through this service and help you reach your market-related goals. I realize you have many alternatives when it comes to services like mine, and I want to sincerely thank you for working with me.
I will not be trading Friday’s half session, so my next report will be on Sunday. Let’s get to the charts.
NAZ – The NAZ pulled back late in the day but still managed to post a solid advance of more than 0.5% on the session. Today marked the first close above 4000 since 2000, which was the milestone of the day. Short-term higher lows show aggressive buying on pullbacks is still in effect.
SP500 – The S&P finished off its session highs again after tagging 1808 for the second consecutive day. This index also has short-term higher lows in place which show dips are still being bought, a reminder that there’s been a steady bid beneath this market.
RUT – The RUT has hesitated to push through 1123 the past couple of sessions, but today got in gear and closed 11 points beyond that level to reach a new all-time high. That gives this index a little bit of breathing room to the downside, but also opens the door for some upside continuation now that a breakout is starting to get some traction.
DJIA – The DJIA stumbled late today but held solidly within its uptrend channel after getting within 80 points of the 16200 area earlier in the day. This index remains in good technical shape but may simply need a rest here.
Notable Names:
GOGO is on watch for me tonight as this symmetrical triangle pattern continues to build. I’d like to see this pattern tighten further over the coming days, but eventually it could produce a powerful setup. The upper trend line currently sits at $29.50, so price isn’t yet pressuring a breakout.
FSLR is still in pullback mode here but seems to be trying to slow its pace. A turn up through the trend line could set it free for a quick lift, but as of tonight this one is simply on watch for me due to the distance between current prices and the trend line.
MGM is another setup that’s building tonight but doesn’t yet appear ready for a trade. The correction is still underway, and price is trying to quietly roll back over toward support at $18.40. This one may need a bit more time, as price is still some distance away, but I’m keeping it on watch and may look to set up a trade here soon.
IOC does look set for some continuation here after today’s turn up through the trend line. I like this one for a single-day play above $88.35 to show some follow through to today’s strength, with a few points of room beyond.
VIPS just held short-term support and is trying to lift. A push through $81.30 would mark a multi-day high and could see some acceleration back toward the unfilled gap from 11/18 to $86.45. I like it for a single-day play above $81.30.
DDD is attempting to stabilize here after its pullback and now a push up through the descending trend line at $74 could set it free for a quick rally. I like it for a single-day play if it triggers, as a swing stop isn’t readily apparent and all I’m interested in here is the initial turn back up.
CTXS is stalling out after the bounce and a break below rising support at $58 could spark some selling. I like it for a single-day play on the short side below that level, but am only interested in participating in the initial rollover move and will therefore not look to hold it overnight.
New Swing Trade Candidates:
No new swing candidates tonight, waiting for new opportunities to surface. In the meantime, I’m content with my current positions.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
