Good evening StockBandits!
Following a couple of rather lively weeks, the market started out the new week on a rather quiet note today. The indexes never saw any real momentum arrive in either direction, and instead spent the majority of the session in a rather choppy trading range. In the final hour, the positive tone and minor gains from this morning were erased as selling took the market negative for the day.
Today’s sluggish action and poor finish points to some short-term fatigue, which isn’t surprising after Friday’s finish off the highs. The indexes have carried a long way since the lows of just two weeks ago, and traders are at a bit of a standoff waiting to see which will continue, the bounce or the correction. Some stronger volume could have offered a bit more clarity on that today, but instead the verdict is still out. The next few days should prove noteworthy as we see which way this all plays out.
More patterns are emerging for plays on the daily charts, which I’m encouraged by. I am eyeing several plays for Tuesday’s session, including longs and shorts and day and swing 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: JBHT, STJ, PCX, GE, MAN, RCL, MET
Swing Trading Candidates:
RCL has worked its way steadily lower in recent months, and now rests on key support. A breakdown at $40.40 will trigger a short sale for me as this one heads back down toward the unfilled gap from last October. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
MET has bounced back from its lows of two weeks ago, but volume has failed to confirm the bounce. Additionally, we have several lower highs already in place, reminding us that until proven otherwise, this looks to be a bounce within a downtrend. I’m looking to short this one if it breaks the rising trend line at $44.70, expecting a move back down toward the recent lows. 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.
