Good evening StockBandits!
On the heels of a churning session Monday with incredibly light volume, today we saw more of the same with the market never getting far from the flat line. The indexes spent the bulk of today’s session range-bound once again, finishing fractionally higher than Monday’s closing levels.
So far, it’s shaping up to be a pretty quiet week, which is interesting since traders only have 4 days to make it count with the market closed for Good Friday. Nonetheless, the indexes can stand to rest, as we’ve seen very little consolidation throughout this rally from the February lows. Although this range-bound action sure makes for a dull environment in the short term, it is quite healthy for most individual charts to get to do some basing here.
More setups are arriving in the charts by the day, and that should keep us busy in the days and weeks ahead. However, I’m looking to approach the next couple of days with some caution given the very light volume we’ve already seen this week. In addition, with a 3-day weekend approaching fast, we could see traders continue to do less rather than more.
Selectivity and patience are important here, and it’s critical we avoid overtrading while in the midst of a short-term trading range. Exercise some patience if momentum isn’t present tomorrow, because eventually we’ll see the action heat up again.
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: PDCO, PCX, RDN, FNSR, UTHR, CAGC, CNW, PCL
Swing Trading Candidates:
CNW rallied nicely from the February low where key support was found, and in recent weeks has put in a nice base with a minor pullback. There’s a trend line just overhead, which if cleared, could pave the way for a push back toward key resistance. I’ll be a buyer if this one can clear the trend line at $36.
PCL has carved out a nice cup & handle pattern over the past couple of months, and today’s turn higher within the handle on a pick up in volume indicates a breakout may come anytime. I’ll be going long if this one can clear resistance with a push through $39.40.
Bullish Watch:
CNW, TMK, PDCO, LPNT, CISG, PCX, CTEL, RDN, MSG, WYNN, AGP, AET, FNSR, PCL, A, FDX, HSY, PXD, GR, KSU, DMND, CSTR, RCL, SOHU, R
Bearish Watch:
UTHR, DSW, GDP, CAGC, DTV, CAG, OSG
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.
