Good evening StockBandits!

The news of the day was centered around AAPL, not only for the earnings which came out after the bell but in wake of Monday’s announcement that Steve Jobs would be taking another medical leave.  That left the NAZ opening on a weak note, but a recovery took place from the opening levels as the indexes moved steadily into positive territory to make new highs across the board.

This week is set to be a full one in terms of news, even with only 3 trading sessions left.  However, the big question will be whether the news – be it economic or stock-specific – can either accelerate or reverse the slow-grind advances we’ve been seeing.  The indexes crossed key levels last week, and still have yet to gain momentum.  At the same time, they’ve had opportunities to pull back, and haven’t done so.  That leaves us in a slow uptrend where many stocks are in working their way higher but few are setting up well-defined levels for new entries.

For Wednesday’s session, there are a handful of names I’ve got my eye on, so I’ll focus my efforts there.  The trick at this point is to play the trend while respecting the risk of a pullback, because at some point we will see one.  I’m doing that by taking new entries where there’s a well-defined entry, rather than chasing names which are already on the go.

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: ATML, MGA, MCK, ATW

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LEAP, MGA, DIS, MCK, ADSK, AGU, APKT, BEAV, ADTN, MCO, DMAN, OPEN, KSU, ARUN, XXIA, FOE, RAX, ATML, USG, HANS, CVD, HLS, JAZZ, MHP, LEN, MBI, ATW, TSO, CAT, KND, SFY, SD

Bearish Watch:

ORLY, AAP, GES, RCII

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!

Hope you’ve enjoyed the extended weekend and you’re ready for a brand new week of trading.  Even though it’ll be a holiday-shortened week, it’s sure to be an interesting one as we see more earnings reports roll in, along with plenty of econ news.  By the way, be sure to keep a close eye on the earnings calendar to avoid any surprises.

Last week we saw the indexes stretch to new highs on Friday, capping off a quiet but strong week yet again.  The pace of the advance continues to be gradual, but relentless, as the bulls have maintained control of this tape since the start of September.  Some are calling it overbought, but the current pace hasn’t left the indexes too stretched in the near term, so there’s still room to rally further if the buyers stay assertive.  A rest wouldn’t be a bad thing, however, as uptrends need pullbacks along the way in order to persist over time.

We could see a weak start on Tuesday with AAPL grabbing the spotlight even ahead of earnings Tuesday afternoon with the news of Steve Jobs taking another medical leave.  That stock has been a tremendous leader, and given its presence in the Nasdaq and S&P 500, weakness there tomorrow morning could set the early tone.  Nonetheless, it will be how the market responds which will ultimately make the difference, so we’ll have to stay on our toes out there and keep an open mind.

There are still many stocks setting up for new plays, which should make for a nice trading environment in the weeks to come.  My aim is to let the patterns mature before listing them here, and even then to only take trades which are crossing important levels to indicate they’re back on the move.  Keeping tight stops remains important, as does watching out for scheduled news (econ. data & earnings primarily).  So long as we’re doing that, opportunities will continue to surface.

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: ATML, WYNN, HANS, ANF, OPEN, RCII

Swing Trading Candidates:

OPEN cleared resistance two weeks ago with heavy volume on the breakout, and has since pulled back to hold the breakout zone on quiet volume.  This one may be gearing up for another run, so I’m watching for a breakout from this tight consolidation which would occur when the upper trend line is cleared at $80.85. 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

RCII currently resides in a rising channel, which is a pattern that’s typically resolved to the downside.  Given that this stock appears to be undergoing a trend change since failing at resistance a few weeks ago, I’m looking to get short if this one falls below the rising channel with a break below $30.00. 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:

SPMD, ETFC, BYD, MTW, ULTA, ATPG, ADSK, AGU, MGM, APKT, VSH, BEAV, PHM, NFLX, OPEN, KSU, ARUN, XXIA, OEH, RAX, ATML, MELI, WYNN, MAS, CAVM, USG, HANS, HLS

Bearish Watch:

SNI, BVN, AEM, HMIN, AAP, RCII, ANF, MASI

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 indexes zig-zagged across the flat line today, never gaining any momentum in either direction for more than an hour or so at a time.  Ultimately, they finished slightly negative, only a short distance from Wednesday’s closing levels.

We continue to see a reluctance (so far) in this tape to commit to a direction once key levels are cleared, which has been the case for several weeks now.  The end of 2010 saw persistent dip-buying, but limited day-to-day momentum, which has kept a steady bid beneath the market.  That’s prevented any real slips to the downside, but at the same time it’s prevented the melt-up types of moves which uptrends tend to have on occasion.  That’s not necessarily bearish or bullish, but it does point to very low volatility, making this a market best suited for those with very short timeframes.

For Friday, I’m once again seeing a pretty limited list of names which look poised for moves, so rather than force trades in hopes of the market coming alive, I’ll take what it’s offering right now and make the most of it.

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: OPEN, ULTA, KBH, KSU, MCK, ADSK, PHM, ORLY, MCP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

OPEN, MCK, SRZ, ETFC, ACOM, ULTA, MIPS, ADSK, APKT, SLAB, ADTN, PHM, RVBD, NFLX, KBH, KSU

Bearish Watch:

MCD, SNI, AEM, ORLY, VFC, MCP, ANF, REE, CPX, MASI, TSCO

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 morning gap to the upside set the tone for strength today, and soon after was followed by additional buying into mid-day.  The indexes each pushed to new highs, despite the fact that the pace of the advance cooled a bit into the closing bell.  And with the averages each having broken out today, the bulls now have renewed reason to build on the existing uptrends in the days ahead.  Whether they will or not remains to be seen.

The benefit of the rest phases we’ve seen lately is that it has allowed many stocks to base and consolidate.  That’s the best way to digest the recent advances, and it should create more setups in the days to come.  There are several on my radar for Thursday’s session though, so I’ll take it one day at a time and stick with what the market’s providing now.

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: ADTN, PVA, GES, ANF, MCP, APKT

Swing Trading Candidates:

APKT cleared the prior highs two weeks ago with a high-volume advance, and since then has been able to consolidate in a healthy way on quiet volume.  This one is coiling just beneath a trend line here, so I’m looking to get long if it can clear the $61.50 level. 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:

LBTYA, KEM, CVH, MMR, FR, CVI, AGU, MGM, APKT, SLAB, VHC, VSH, CVG, PVA, ADTN, MCO, PHM, CCME, LNG, IGT, PL

Bearish Watch:

MCD, BVN, AEM, HMIN, GES, RCII, MCP, ANF, LO, REE, CPX, PVH, KSS

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 indexes saw upside gaps this morning as the futures exhibited early strength on the heels of yesterday’s lackluster action.  However, additional strength never materialized as each of the averages ultimately saw gap fills and a return to positive territory by the closing bell without eclipsing the morning highs.

We’ve seen plenty of choppy sessions of late, and today’s can certainly be added to the list.  The overall market continues to sit in a bullish holding pattern here, resting near highs without giving up any ground or gaining any momentum.  As a result, I’ve done very little in recent days, opting instead to sit on my hands and wait for better opportunities to surface than the occasional quick-flip trades.  So far, I don’t regret it.

Some are pointing to the pervasive bullishness and the slowed pace of the advance as a reason for caution here.  There are always reasons for caution that we should each respect, but typically when sentiment gets out of hand is when the moves become too sharp too fast, and thus become ripe for a reversal.  The technical situation we currently find ourselves in could of course deteriorate, but so far we have no evidence in the price action of that happening.  As such, the bulls remain in the driver’s seat for another day and I have no intention of embracing the bearish side until there are technical reasons for doing so.  Once we have that, I’ll certainly be willing to shift directions.  Let’s see what tomorrow brings.

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: KEM, MCK, VHC, WDC, GES

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LBTYA, KEM, NTAP, ANR, SRZ, APA, CVH, MNTA, ACOM, APC, NXPI, MHR, FR, FTK, MCK, ULTA, BSFT, DFS, MU, ABV, AGU, IDCC, HUM, SLAB, VHC, MIPS

Bearish Watch:

MCD, WDC, BVN, TGT, HMIN, ORLY, GES, RCII, VFC, ANF, LO

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 opening bell this morning arrived with a soft open as stocks gapped slightly lower to start the week.  New lows were made shortly after for the day, but the downside never really gained momentum.  Instead, stocks stabilized and grinded their way higher for the rest of the day, leaving the NAZ in positive territory and the S&P and DJIA only down slightly for the session.

Dip buyers are still present, and why wouldn’t they be?  The overall trends remain up, we’ve respected former key resistance levels as support when tested, and every dip since August has been bought.  So while strength is still present, we’re still sitting in a holding pattern here in the short term.  That equates to rest for the market, which is healthy, but it means we must continue to be selective with new plays until more widespread momentum returns – one way or the other.

Tonight I’m seeing quite a few stocks which are in the midst of consolidations, as evidenced in the bullish watch list at the bottom of the newsletter.  However, the problem is that the market itself isn’t gaining momentum, and neither are many of these stocks.  I like to see a strong close which challenges resistance (or a trend line), along with a positive net change and an increase in volume, if possible, to signal an impending breakout.  Few stocks are exhibiting that behavior tonight, so I’ll be keeping an abbreviated trading timeframe once again heading into Tuesday’s session, as well as a narrow list of names to focus on.  As more setups emerge which look ready for moves, including swing trades, I’ll certainly have them here.

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: CVH, APC, DIS, ENTR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LBTYA, KEM, NTAP, ANR, AMTD, LEAP, SRZ, TQNT, APA, CBS, MGA, SINA, CVH, NCR, SPRD, PCX, DIS, NAK, JCI, CNX, ENTR, MMR, ETFC, BYD, ACOM, APC, MHR, AXTI, NFLX, RVBD, MEE, VSH

Bearish Watch:

MCD, WDC, SNI, BVN, AEM

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