Good evening StockBandits!
A positive response to earnings reports since yesterday’s close sent stocks gapping higher this morning. Along with it came the appearance that perhaps we’d see more upside follow through on the heels of bullish intraday reversals in each of the past two sessions. However, stocks got sold quickly right off the bat to erase the morning gains. They stabilized for a while, but FOMC Chief Bernanke’s remarks of an “unusually uncertain” economic outlook sparked a second wave of selling. By the end of the day, the indexes were well below Tuesday’s closing levels.
Days like this can be frustrating as good news gets sold. I was stopped into 2 swing trades this morning on the long side, only to finish the day having been stopped out of one of them while the other finished just a few cents above my stop. Getting whipsawed on trades is never fun, and yet it’s all part of trading. At times, good setups will trigger and promptly fail, testing our will and patience as traders. It’s how we respond to those events that ultimately define us as traders. Fortunately, we’ll have another shot at it tomorrow, and I’m looking forward to it.
As we look toward tomorrow, we have the indexes starting to consolidate here with yesterday’s lows as potential short-term support and last week’s highs as short-term resistance. Those are the nearest levels to keep an eye on, so let’s see if this market is able to gather some longer-lasting momentum than just a few minutes or hours.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: MCO, LXK, PCLN, BG, NYX, FISV, ESRX
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
NTES, PWER, CTCM, QLIK, NETL, CSIQ, AGU, JNPR, TK, SLXP, MCO, BG
Bearish Watch:
RIG, WLP, ANV, VCI, NYX, PCLN, FISV, LXK, WFMI, MFE, MHS, FAST, ROST, ESRX
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.
two comments…
1. PCLN … well, my “eagle” eyes could draw two parallel lines as the beginning of a bull flag. Doesn’t negate what you said….BUT I am very curious why you said that the upmove was a short squeeze?
2. ESRX…. I also not that the volume on the recent bounce was unimpressive, and the daily volume on the down move was heavier, though the eyeballing says that the total volume on the upmove and the downmove were about equal. So….looks like a good short candidate (I agree).
Hey Jon!
Thanks for your comments, they are always welcomed.
With PCLN, it very well may be flagging, in which case it would be very bullish. But, I see the rapid ascent from support as short-driven since accumulation is not normally that relentless. Short-covering fueled moves tend to be really sharp like that, hence my reasoning that it may finally be due for a pullback.
ESRX, we’ll see if it goes. $45 has held a couple times now, but the stock has short-term momentum on the downside, so that may bring about the break I’m watching for.
Anything else on your radar?
Go get ’em Thursday!
Turns out the PCLN pattern was a flag – thankful to not have triggered short on that one! Good eye Jon & thx for your thoughts.