Good evening StockBandits!
The most obvious complaint about the price action of late is the fact that the indexes keep climbing without the supporting factor of heavy volume. Today we saw that continue, as the major averages tacked on modest gains once again, with only light volume to go along with it. That points to a lack of institutional participation, although it doesn’t seem to be deterring the bulls at all from staying active.
The indexes reached their best levels of the month today, and now sit slightly better than halfway back up to the January highs. To say the market has become short-term stretched to the upside is certainly fair, although that could persist for longer than logic would suggest. This evening, the Fed raised the discount rate, and the futures markets are responding with weakness.
That could deliver a soft open tomorrow morning, but how that gets treated will be even more important. If it brings about more selling as the day progresses, then perhaps the relief bounce has run its course for now. If on the other hand, the bulls use the weakness as an opportunity to buy, then the slow grind higher might have a little further to carry. Toss into the mix the fact that it’s options expiration Friday, and it should be an interesting day to say the least. I’m planning to approach it with respect, and am still waiting for better conditions to emerge for swing trading before committing capital.
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: FOSL, AMT, MDVN, FDX, CP, BGC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
ACXM, TWC, RVBD, HOLX, LEAP, HGR, MR, FOSL
Bearish Watch:
UTHR, IOC, AMT, PKX, AMSC, MDVN, IVN, FDX, FSYS, MA, R, MSTR, SWM, CP, BGC, WFR
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.
