Good evening StockBandits!
This morning we saw some weakness which took the indexes down nearly to test the levels highlighted here last night (for example, the NAZ stopped 5 points away from the 2540 area I mentioned), but the buyers found their footing and produced a turnaround in the afternoon to close each of the indexes positive. The gains weren’t spectacular, but it was just another example of the dip buyers stepping in to do their thing and provide support on weakness.
From a technical standpoint, the daily charts of the indexes and many individual stocks look as if they could be completing short-term pullbacks. That’s certainly subject to change, particularly on news. For example, CSCO reported earnings tonight after the bell, and the stock is getting sold hard in the after hours. The futures are down in sympathy, and that could deliver a downside gap tomorrow morning.
Thursday is a holiday (Veterans’ Day), but if we see a decent move on the open, it could still make for a good trading session. I’ll keep a close eye on how the gap gets treated (if in fact we do get one), as it could again inspire buying. If not, it may imply the short-term pullback or digestion phase has more to go, and I’ll not look to fight it.
There are several plays I’m eyeing for day and swing trades for Thursday’s and Friday’s sessions, but as always I’ll be waiting for prices to reach the triggers before making entries. It’s easy to want to jump the gun, but waiting for the trigger helps to offer confirmation that the stock is on the move in the anticipated direction.
** Thursday night I will not have a newsletter, as we will be moving into a new house. As a reminder, for a short time longer I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday & Friday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
IVN has pulled back within its uptrend and looks poised to begin another leg higher. The stock will need to clear the trend line at $26.30 in order to get back on the move, so I’ll be using that as my trigger price for entry. As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
MIPS, MAR, SOHU, BIDU, AMG, SVVS, ORLY, RIMM, CCE, MCHP, IMAX, LFT, FLR, VRUS, TRW, IVN, IPI, MAN, BBT, PNC, STT, MEE, WCC, CAR, DDS, HTZ, TEX, ROST, MTZ, PAG, UNTD, XIDE
Bearish Watch:
EAT, LZ, THOR, ADM, MELI, LXK, FSYS
The Hit List contains stop and target levels for my swing trades.
