Good evening StockBandits!
This morning, it appeared as if the major averages were in the midst of a streak with their third day in the red. Coming on the heels of Wednesday’s steady selling, the soft price action early in today’s session had a similar look. But, it only lasted a few minutes. The initial bounce was chased by stabilization before the averages turned positive in the afternoon on their way to a strong finish. The U-turn within the range seemed to generate a widespread sarcastic “well, whaddya know, another reversal” reaction.
It feels like I’m beating the proverbial dead horse to keep discussing the trading range night after night, yet that’s truthfully the biggest factor in this market at the moment. The lack of continuation and the frequent changes of direction are 100% attributed to the lateral trend we’re in. I’m as eager as the next trader to see stocks start showing some follow through again, but until this range is left behind, that’s just not going to happen. Especially tonight with the indexes finishing near the center of the aforementioned ranges.
I’m sticking with quick-flip plays right now due to the wide bases out there, the reversal-prone tape we’re in, and impending earnings announcements on quite a few names.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
