Good evening StockBandits!
A big upside gap kicked off today’s session as an influx of buy orders followed the news of Obama’s support for prolonging the Bush-era tax cuts. That same enthusiasm proved to be the culprit for profit-taking by the smart money, as the open marked the high of the day and the market spent the rest of the session giving back its gains. By the closing bell, the indexes (with the exception of the RUT with a 1% gain) finished flat.
Today’s action doesn’t necessarily mark a turning point, but was simply some profit-taking into news-related strength. We often see that take place, so to see the bulls use an opportunity to capitalize on strength is no surprise. Each of the indexes are still sitting right at new 52-week highs, as each of them marked new intraday highs today. So for now, the S&P is still respecting the 1227 level on a closing basis, and that index will need to get over the hump in order to get things rolling again in the near term.
Tonight I’m doing a free webinar with the fine folks over at Worden (makers of the charting program I use). The webinar has been scheduled for a few months, and anyone can attend, so I’d love to see you there. Even if you can’t make it live, if you’ve registered you can still view a recording. I’m planning to work through many charts of interest and discuss the current trading environment.
With that being the case, and with my time availability running tighter at the moment with a brand new baby, the webinar will take the place of tonight’s video Broadcast. I’ll post a quick list of trade candidates in written format here for Wednesday’s session, and then will likely return to full speed on Wednesday evening here (fingers crossed).
For Wednesday’s session, these are the stocks which are on my radar and the triggers I’ll be using for entries, all on the long side:
VRSN long with $35.75 trigger
WYNN short with $100 trigger
LVS short with $47.40 trigger
MIPS short with $13.15 trigger
LO short with $81.30 trigger
MMYT short with $26.20 trigger
Again, thank you for understanding that on this very special occasion for my family my duties are reduced here at the site temporarily as I’ve noted it would be. When I do return to full speed (most likely on Wednesday evening) you can expect the usual Broadcast you know and love! In the meantime, I’ll do my very best to share some ideas so as to keep you in the loop.
Hope to see you in tonight’s webinar, but if not have a great Wednesday!
