Good evening StockBandits!
Short-term trading ranges persisted last week with plenty of back-and-forth price action yet no follow through. The DJIA saw only a 43-point net change on the week, while the NAZ was up less than 1pt and the S&P shed less than 3. Clearly, the indexes marked time while waiting for a notable catalyst to come along.
While caught in these ranges, we’ve seen more tests of support than challenges of the highs. That doesn’t necessarily mean we’re headed for a downside resolution, but it does mean prices are knocking on the door. Nonetheless, the dip-buyers are still defending support zones and that means the chance of this pullback resulting in another higher low is still alive.
As is to be expected, while the market shows indecision, many charts of individual stocks are too. We’ve seen some sectors weaken (ex: commodities, Chinese internet, agricultural stocks), while others have held up well and are building bases (ex: semiconductors, real estate). That means it’s a market of stocks right now, making it more important to select timeframes carefully rather than expecting broad market momentum to bail out trades initiated via poor timing.
At this point, I’m working my watch lists regularly, adding and removing stocks which belong there, but not eager to aggressively add much exposure in either direction until this market gets to moving better. Capital preservation is important right now, as these ranges can really chop you up. So, stick with clean patterns where momentum is present, and otherwise sit patiently while we wait for better conditions to arrive.
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: HS, MCHP, BHI, VNO, ALTR, RNR, NOG, SM, PXD
Swing Trading Candidates:
NONE TONIGHT
[table “44” 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.
