Good evening StockBandits!
After several wild days in the market, today we saw something entirely different – a narrow-range day of rest. The indexes each finished slightly lower than last night’s closing levels, but not enough to be technically convincing that the bounce phase is complete (particularly with today’s very light spring-break-type volume). That’s of course the million-dollar question tonight, but today’s action didn’t have the appearance of a big turnaround day the way a bearish engulfing bar or some far heavier volume may have shown.
So, at this point the wait continues. We’re still dealing with some short-term levels (namely NAZ 2705 and S&P 500 1294), so I’m content to give the market some space here and see if it can regather some momentum in either direction. The potential is still running high for another lower high to form on this bounce at some point, but as of yet we’re waiting for more technical clues before we can jump to that conclusion.
A bit more rest here would do wonders for many charts, as the recent back-and-forth has kept what few bases there are rather wide and sloppy. Nonetheless, there are some setups out there with some appeal to me for tomorrow’s session, even though I’ll be sticking with an abbreviated timeframe for new trades and sticking with cash overnight due to all the recent gaps in both directions.
FYI, tomorrow night I may be a bit delayed in getting the Broadcast out, as I have a personal commitment which may prevent me from starting the newsletter on time. I might be on time as usual, but wanted to mention this in case I’m late and you start to wonder!
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: CRK, PLCM, PRU, INFY, PVH
Swing Trading Candidates:
NONE TONIGHT
[table “9” 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.
I’m new to your service, yesterday I tried your set up for Jazz and placed a Stop Buy for $30.15 as you recomended and got the buy even though the high of the day was only $30.00.
I called Schwab and ask if I did something wrong, they told me I put the buy in correctly but the bid/ask went to $30.15 and I got a buy I did not want, is this a common problem using Stop Buys?
Thanks
Dick Clift
Welcome to the site Dick, I hope you’ve thus far found it helpful.
This is a common question, and actually it will depend largely on the broker you use and the platform you’re trading on. Some brokers use the bid/ask for triggering stop orders, while others allow you to use ‘Last Price’ as the trigger. My preference is ‘Last Price’ as that is truly where the stock has traded, rather than simply a quote. If you’re with Schwab and using StreetSmart Pro, you should be able to designate ‘Last’ as your trigger mechanism. I’m not sure how the Schwab website does it, so you might call and see if there’s a way to elect that instead.
Going with ‘Last Price’ may result in a bit more slippage (which is probably why some brokers use bid/ask to brag on more precise executions), but it will mean you’re taking trades which have moved through the prices you’re designating. I’ve always felt I’d rather someone else cause the move and I’ll jump on board for a ride, so I want to see the stock trade at or through that level before I want to enter.
Hope this helps!