Bandit Broadcast for 1-30-2011

Good evening StockBandits!

Last week started out on a positive tone as the S&P 500 and DJIA each pushed to new recovery highs, while the NAZ and RUT moved higher within their respective trading ranges.  The latter two indexes failed to meet or exceed their prior highs, however, so when Friday’s selloff hit, it hit them rather hard.

Unrest in Egypt took the blame for Friday’s selling, and while the events there are certainly nothing to dismiss, it’s more likely the market finally had a convenient excuse for some much-needed profit-taking.  We’ve been grinding higher for quite some time now without anything but brief periods of rest, so to see some actual selling isn’t such a bad thing.  It took me back to cash ahead of the weekend, so in that regard I’ll be making a fresh start this week.

In addition though, and more importantly, this shake-up will help to create some separation in the charts between the true leaders and the also-rans.  If we see follow through, we should have some opportunities on the short side, although there will still be some names which exhibit strength during the pullback.

The biggest key will be how the next bounce gets treated, as that should indicate to us whether the buyers have lost or maintained their resolve.  For now, I’m going to let the pullback play out without trying too hard to see if a lasting top has been put in…eventually we’ll find out, but in the meantime we have to keep focusing on locating new trades.

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: TXN, AMRN, RJF, SODA, SLB, AGCO, TCK, GES

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PCX, MCP, REN, SODA, RJF, TXN, PXD, SLB, AMRN

Bearish Watch:

MCD, SNI, SINA, GES, VFC, ANF, RVBD, TCK, TIF, DECK, APD, BWA, YUM, PLCE, AIG, DISCA, MON, GS, FCX, WRC, SYNA, GSM, AGCO, TSLA

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff