Good evening StockBandits!
The indexes shed 2% last week, despite a pair of up days on Thursday and Friday, as Japan nuclear concerns and continued unrest in the Middle East weighed on the confidence of Wall Street. Even the bounces we saw on Thursday and Friday were characterized by intraday selling (closes which were below the opening prices), reminding us that in a correction phase like this, bounces tend to get sold.
That’s a big shift from the buy-all-dips mentality this market had shown for so many weeks and months. And while this correction is healthy to see (since it can actually perpetuate the bull market if it stays relatively shallow), it has arrived with considerably higher volatility than we’ve seen in some time. We’re getting more frequent large overnight gaps, frequent reversals, and wider daily ranges.
Such is the nature of a short-term change of character, but while the uncertainty runs high the sidelines aren’t at all a bad place to be. Once things quiet down a bit on the technical front, some excellent opportunities will emerge. In the meantime, it’s important to exhibit patience and a willingness to stick with only the best setups which offer shortened timeframes, tighter stops, or ideally both for new trades.
Since Friday’s closing bell, air strikes have begun in Libya to enforce the no-fly zone, which could shift the attention back to the Middle East this week – particularly if things remain quiet at the Fukushima Plant in Japan in the days ahead.
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: SVVS, JAZZ, MON, IPI, AFL
Swing Trading Candidates:
NONE TONIGHT
[table “7” not found /]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.
