Good evening StockBandits!
The market spent the day in a narrow range today as it respected yesterday’s high and low, posting its second consecutive inside bar on the daily charts of the indexes. Momentum was lacking all day, making for an easy session in which to churn your account while waiting for follow through which never arrived.
There are opinions on every corner about which way this market is going to break from this narrowing consolidation (wedge), but it’s a 50-50 guess and a prediction isn’t necessary. What’s important to actually profit from the next move will be to set up some if-then scenarios for trades on both the long and short sides, and then act according to whatever happens. Stated otherwise, let me remind you not to get positioned for a move and then hope the market accommodates you…that isn’t trading. The idea at this point is to let price make up its mind, and then go with it. Trend lines are converging daily on the index charts, and after two straight inside sessions, we could see a move out of this area before the week is done.
As of yet, we’re still waiting for the break(out/down), so I’m still in cash on an overnight basis. There are some good setups emerging nightly for trades, but I’m only looking to take day trades as long as this market continues to show short-term indecision. I’m eager to have some swing trades going – and soon I will – but these past couple of weeks have given us zero follow through and that’s a recipe for frustration unless your timeframe is very brief for 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: BIIB, CHK, CVLT, KMX, MGM, MON
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MTW, UHS, ACTG, CHK, HLS, IT, FO, RPRX, HS, AN, SBGI, CVLT, KRA, LCAPA, TDC, TUP, HSIC, FCEA, BIIB, WAT, RAX, KMX, ALXN, BKD, OKE
Bearish Watch:
MGM, MON, MMI, WTI, CF, APA, IDCC, CY, FFIV, CMI, SFY
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.
