Good evening StockBandits!
After Tuesday’s solid advance, today’s action was every bit as weak. A minor gap to the downside this morning never inspired the buyers to step in, and instead prompted some profit-taking. The DJIA headed lower by more than 200 points at its worst level, and the NAZ and S&P 500 each incrementally broke their short-term trading range lows. However, the bulls finally defended those levels, producing a moderate bounce in the afternoon to lift the indexes off of key levels. In the end, Tuesday’s gains were given back, and we’re now just a few points from last Friday’s closing levels.
Today’s volatility is actually a welcomed sight, as it indicates the emergence of some kind of battle between buyers and sellers. We still have the indexes range-bound, so nothing of technical significance has taken place, but if anything today’s action offers us two bits of information. The first is that the bulls are losing steam by failing to produce follow through to Tuesday’s strength. The second is that the bulls still aren’t ready to walk away, and currently still seem committed to protecting the downside.
So if the bulls are more interested in protecting the downside than in building on the upside, this range might persist a little longer. Either way, it is nice to see some added emotion, and I’m rooting for more volatility in the days and weeks ahead, as that will offer us more opportunities for short-term trading.
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: CFN, PCX, AMZN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
PNC, PXP, GNW, ACI, CIT, MTB, CFN, MR, AXP, TLB
Bearish Watch:
ANF, SYNA, NFLX, FMX, TUP, MELI, XCO, PCX, AMZN
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.
