Good evening StockBandits!
A gap up open this morning was for the most part held, as initial profit-taking only filled a portion of it. From there, stocks turned higher to challenge Wednesday’s highs for a few hours. In the early afternoon, a push through those levels paved the way for higher ground, and the market rallied steadily until the final few minutes of the day when a portion of the gains were erased.
All in all, it was a solid rebound. While one day does not a new bull market make, it does add validity to this week’s lows for the time being. The low-level range is still intact at the moment as traders sort out what to do next, and with volatility and indecision still running high, it could continue for a little longer.
I was encouraged tonight to find a few individual names to focus on for Friday beyond the major ETF’s, although that’s still a primary place to look for trades due to the ample liquidity and direct correlation to the market moves. It’s difficult to imagine, but it’s certainly possible that we see an actual rest day soon where the daily ranges and volume contract considerably. For now, however, it’s quite a lively tape and there’s opportunity for the nimble.
Overall, it’s still a real mess out there and I’m quite pleased to have gone to cash on July 25th, the day the market started confirming a short-term lower high. Hopefully that served as a cue for you to avoid most or all of this harsh selloff, despite not seeing a move of this magnitude unfolding so quickly. Regardless, cash remains the place to be right now, and this is only an environment for intraday traders to contend with. We will see some good opportunities emerge once the dust settles, but that still hasn’t happened yet with the huge daily ranges we’re still getting. Be careful out there, I can’t say it enough!
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: MGX, X, XEC
Swing Trading Candidates:
NONE TONIGHT – 100% Cash
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.
