Good evening StockBandits!
A pullback this morning gave the appearance of a 2nd day of declines with the downside seemingly gaining some early traction. It looked like the market was starting to roll over after its V-shaped sharp bounce from last week’s lows and yesterday’s stall-out, and technically it certainly could have accelerated to the downside. However, the dip was bought, and the indexes moved positive by mid-day, where they remained for the rest of the session.
Today’s upside reversal from a weak morning no doubt sucked in some bears who are tonight second-guessing their positions. That would suggest the bulls are sitting pretty tonight, but they can’t breathe easily yet either with descending trendlines still at levels above current levels. That means this bounce could still result in a lower short-term high, leaving us with a mixed bag at the moment from a technical standpoint. Such is the nature of a correcting market, and it will likely keep us on our toes for a little while longer.
More patterns are building after just a couple of quieter days in the market than what we had been seeing lately, so I’m seeing more potential swing candidates in the charts for the days ahead. Time will tell for sure, but at least for now the news flow is allowing the price action to follow a more orderly fashion.
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: LULU, CVI, CTRP, RCL, FOSL, ULTA, BHI, SPRD, PXP
Swing Trading Candidates:
PXP has bounced from its low of two weeks ago to build this bearish rising wedge. This pattern is bearish in that it often gets resolved to the downside, and thus creates a lower short-term high if confirmed. I’ll be going short upon a break of the lower rising trend line at $35.40. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
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.
Jeff I thought this broadcast was excellent. Especially when you went into more detail about the trend lines, why, and what it meant, just seemed more in depth, esp. on ones like PXP. I really learned a lot. Thanks, Suzi
Thanks Suzi, glad the extra info was helpful! I have to try not to ramble too long and boring you to tears but yet not go too fast to explain things, so I’m glad in this case I pulled it off. Have a great day!