Good evening StockBandits!

A gap up this morning was quickly sold, as the indexes surrendered their early gains to go red.  The selling intensified throughout the morning, with no buyers in sight.  The indexes undercut their intraday lows numerous times, stabilizing only briefly before doing it again.  By early afternoon, the market had moved back down toward last week’s lows, and the pace of the slide slowed considerably.  After some stabilization, an afternoon bounce lifted stocks from their lows, but only partially.

I’ve mentioned in the past few videos how when we’re caught in a trading range like this, anything is possible and frequent changes of direction are likely.  We saw that take place on Friday with a hard selloff and a late-day spike back up, and today’s downside reversal was simply another example of this market respecting the boundaries of this range.  So tonight, we’ve moved down toward the lower end of the range, but as of yet we’re still waiting for an exit from this area of indecision.

I’m looking to keep new trades short-term heading into tomorrow’s session, at least until we see a push outside the trading range.  There are some nice day trading opportunities with this recent volatility, but they are ideal for those who have some experience managing trades intraday.  If that’s not your style, then the sidelines remain a good place until we see this market make up its mind.  With the growing emotion we’re seeing, I suspect once we leave this trading range it could lead to a meaningful move.

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: TTWO, CRZO, IDCC, IVN, POT, PLCM, JNPR, MGA, CSC, CAB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MCO, JAZZ, SD, FDO, CLR, PXD, SLB, SGY, PLCM, AVL, JNPR, ALXN, ICE, MAKO, HS, BIIB, SGI, NDAQ, KV-A, EXR, TMX, RPRX, GLBL, PDS, EGY

Bearish Watch:

NTAP, APA, MGA, MGM, TCK, MOS, CMI, BWA, ARW, DLB, AIG, FCX, RYN, SOHU, CSC, GM, DE, LVS, COF, CAB, CF, MOO, COST, MAR, STT, HTZ

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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week felt like a down week for the market, but believe it or not, each of the indexes posted minor gains for the week.  There was quite a bit of up-and-down though, as rallies were almost completely offset by declines on Tuesday and Friday.  In the end though, a final-hour bounce Friday afternoon brought the market positive on the week.

That bounce was not unlike the sharp rally we saw Thursday, as each of them were characterized by steep, nearly nonstop advances.  With the market sitting off its recent highs, bears are getting more active on the short side, and those rallies both felt very “squeezy” with the sudden and relentless ramps.

Whether it’s bulls defending their territory (again) or bears becoming anxious to have a run of their own, it’s becoming clear that emotions are running higher for this market for the first time in a while.  I’m highly encouraged by that.  Even though in the short-term we’re seeing indecision with this battle playing out within the current trading range, at some point we’ll see some excellent follow through as one side surrenders reluctantly to the other.

For now, we’re still seeing prices in the indexes defined by clear boundaries of support and resistance, so until we push beyond those levels – and especially on a closing basis – anything’s possible and more noise could come our way.  My plan is to keep it short-term for the most part until we see this range get broken, then become more aggressive by getting positioned for the next move once the technical break I’m waiting for finally arrives.  Quite a few stocks are working on bases which may only need another bar or two before they’re ready for listing as 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: SOHU, CRZO, PPO, IDCC, IVN, POT

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SRZ, KSU, SD, KEG, SGY, VSEA, SM, SOHU, SU, SBGI, SNCR, ICE, HS, BP, COP, COG, TTWO, CRZO, PPO, FCEA, EXR, HSIC

Bearish Watch:

IDCC, IVN, ARW, CREE, FCX, F, PCAR, ALV, LVS, POT, RGA, CAB, AKAM, INFA

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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A gap-up-go-up day caught shorts by surprise today as stocks bounced big.  Pre-market strength was buoyed by encouraging economic data, and with stocks having held above the lower end of the short-term trading range, the stage was set for a lift.  That’s exactly what we got, with the indexes flying back to the upper end of the range in today’s action.

Both bulls and bears alike have been conditioned in recent months to buy dips, as we simply haven’t seen any downside gain traction.  The pullbacks have nearly all lasted just a day or two, and have quickly been followed by more strength.  Bulls are stepping in to accumulate on weakness and put cash to work in order to avoid feeling left behind.  Bears have been torn to bits and are on shaky confidence, leaving them prone to covering shorts quickly after catching even a small decline.  That combination of both sides being buyers on weakness has maintained a persistent bid beneath this market, and today that certainly played a role.

What’s still unclear at this point is whether this market has made its highs for now, or if we’ll soon set more new 52-week highs.  The pullback last week saw a failed bounce and a quick turn lower this week, which made for the first attempt at downside follow through we’ve seen in quite a while.  We’re still dealing with the short-term trading range I’ve highlighted here the past couple of nights, so the jury’s still out for now.  Tonight we’re back at the upper end of the range, so tomorrow could prove to be a pivotal day.

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: KSU, SBGI, HS, POT, TTWO

Swing Trading Candidates:

TTWO has pulled back only slightly from its recent high, and put in some needed rest to digest the February run.  This stock is now challenging the upper trend line of this consolidation, and may be ready to go soon.  I’ll be going long if this one clears the trend line at $16.30. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

Bullish Watch:

SRZ, MCO, KSU, CLR, KEG, TXN, SGY, PLCM, RDC, SBGI, IO, SKH, HS, CVX, XOM, COP, COG, NDAQ, CHS, NOG, OII, RRR, MFC, TTWO, IT, ICO

Bearish Watch:

AA, IVN, F, LVS, POT, HPQ

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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major averages each posted gains today on the heels of Tuesday’s selloff, but it wasn’t an impressive rebound.  Not only did the market finish well off its session high, but the net changes gave the impression today’s bounce was more of a formality than anything.

Last night I mentioned here that we could see a day of digestion after yesterday’s big move, and essentially that’s what we got.  The intraday ranges were a bit wider than I would have expected, but on a net basis we pretty much just saw the market take a rest.

In the short term, we still have the same couple of levels to keep a close eye on, which are last week’s lows and this week’s highs.  Until we see a push beyond one of those boundaries, and particularly on a closing basis, there isn’t much to get excited about.  So for now, the market is off it’s recent high and consolidating after a pullback.  For me, that’s reason for caution until strength returns to warrant more buying.

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: ICO, RDC, MGA, IDCC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PBR, PDC, CHS, NOG, BDCO, GGC, ICO, KKR, CNQ, KLAC, KEG, PLCM, RDC, VSEA, CXO, WLL, TLM, SKH, CVX, IMO, COP

Bearish Watch:

MGA, TGT, JRCC, MOS, IDCC, CMI, AA, IPI, F, DE, SPW, FLR, POT, FWLT

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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Pre-market strength led to a minor gap higher this morning, but the strength was quickly sold.  The opening bars marked the highs of the session for the indexes, and once they went negative, they never looked back.  A mid-morning bounce failed to return the market to the flat line, and from there we saw steady selling into the afternoon as the indexes posted 1-2% declines across the board.

As is so often the case in trading, the obvious play rarely tends to work out.  That was the concern I expressed here last night with a growing bearish watch list and many stocks looking like their bounces were fizzling out, combined with the expectation of another first-of-the-month advance by so many market participants.  Once we saw a little weakness set in this morning, the crowd recognized this day may play out differently than just another rally to kick off the month of March, and by the end of the day we got a significant bearish reversal bar on the daily chart of the S&P.

At this point, things could still remain tricky.  The bears still risk a potential trap if new pullback lows aren’t set soon, so all eyes are now on the lows of last week.  It’s been quite some time since we saw a bounce which failed, but at the moment, that looks to be the case as we see the first downside follow through in quite a while.  If we do see last week’s lows get breached on a closing basis, it would indicate that this market may finally be ready to correct.  Either way, cash or short is a good place to be tonight, so it’s important to respect the possibility of some additional profit-taking.

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!

–

Video Stocks Discussed: TGT, TEX, BGC, POT, ANR

Swing Trading Candidates:

ANR broke down sharply from its January high and has been range-bound since then.  Here it’s resting just above support, which if broken, would confirm this post-decline rest phase as a bearish pattern.  I’ll be going short if this one breaks $52.10.  I’ll have a tight initial stop, as support was briefly broken last week before a bounce, and I’d expect the next break to stick if this pattern is to play out into another leg lower. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

Bullish Watch:

OAS, CVE, SKH, COP

Bearish Watch:

ANR, SINA, TGT, AGU, JRCC, IDCC, PAY, RVBD, RAX, CAT, TCK, TIF, MOS, CMI, BWA, DLB, NVDA, ROVI, TXN, MON, FCX, AA, TEX, LULU, F, DOV, JEC, WLT, COH, BGC, POT, FOSL, TRW

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.

Trade Like A Bandit!

Jeff