Happy New Year StockBandits!

I hope your holidays have been good and relaxing, and you’re mentally prepared for a new year of trading.  Let’s make it a great one!

Last week we saw the market finish with a little downside as some late-day selling on Thursday carried over into Friday morning.  The buyers never surfaced, but the market still didn’t crack, and instead remained in its short-term holding pattern.

We’ve seen quite a few narrow-range days over the past two weeks, and that’s likely the result of a market which has run a long way.  That has left traders less willing to chase stocks after a run, while leaving those with some inventory on their hands unwilling to dump it in case we happened to see some continued strength into the end of the year.  And those quiet days have served to digest the recent run, even though we’ve yet to see a meaningful pullback.

But with a brand new year comes some new challenges, and we’ve got to prepare for anything to come our way in the days, weeks, and months ahead.  As a short-term trader, I’m of course interested in what takes place now rather than months down the road, so I’ll leave that to the economists and those who attempt to predict how stocks will move and what will cause it.  So let’s talk present-tense…

We’re in an uptrend, and it has become pretty mundane.  I’m not eager to short this market until some technical evidence emerges to support that it’s time to start selling.  But I am on my toes and keeping an open mind in case such things begin to surface.  I’ll be staying aware in case rallies fail, we see some weak finishes, and we see pullbacks intensify rather than pull buyers off the sidelines.  And we could also persist higher.  There are resistance zones from 2008 we could challenge, or we could blow right through them as if they don’t exist.  Either way, I don’t care which way stocks head, because you and I will still have opportunities to profit if we continue to study the price action and wait for good risk/reward setups to come along.

For tomorrow, there are a handful of setups I think could offer some potential, so I’ll focus my efforts on them and otherwise look to lay low while the cross-currents of the first trading session of the year come to pass. I’d like to see the overall volume improve, and I expect it to this week, but will be patient the first session or two of the new year to see if the market can settle into a rhythm.

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: SLB, STEC, ATML, NFLX, COH

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, MGM, HL, WFT, SLW, ATML, AIG, SLB, NTAP, ENTR, POT, STEC, AXU

Bearish Watch:

BIDU, NFLX, COH, KMX, RHT, CMG, DRIV, FSYS, DRQ

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!

Another session resulting in minor net changes for the indexes today left few surprised, as volume continued to run well below average.  That points to an ongoing lack of participation here as we approach the end of the year with only two sessions left before New Year’s.  It’s resulting in extremely narrow ranges, no momentum, and reduced liquidity – all of which leave me less than interested in doing much beyond a handful of day trades.

Technically, this market is set up well, as we’ve seen rallies and bases in recent weeks to prevent prices from getting too stretched.  That could easily allow another push higher once greater participation is here, but at the moment, it seems the market is on hold until next week when more traders are likely to be back at their screens.  Stated otherwise, it’s still a bull market, so I’m not eager to fade it, but without better upside momentum it’s best to be selective here while we wait for more movement.

Heading into tomorrow, there are a handful of names on my radar – all of which will be day trades if they happen to trigger entries.  I’ll be keeping my initial risk at 1% and looking for moves of 2-4%, just looking to grab the initial moves through the levels specified below and then I’ll head back to the sidelines.

I typically take this entire week off (as I noted last night) for the very reason of light volume and a lack of movement, so rather than try to press new trades and load up on a lot of positions, I’m looking to just grab a piece of the action and then get back out.  I just don’t trust the moves to last long in this kind of environment, and the past several sessions have offered plenty of reason to feel that way (aside from experience from years past).

This will be the final Broadcast of 2010, as I don’t plan to trade on Friday.  I had expected to see volume improve as this week progressed, but that didn’t happen, so I’ll take my cue from the market that it’s likely best to take a long weekend and prep for 2011.  I hope 2010 has been a good one for you in every way, and when it comes to trading, let’s aim for the sky in 2011!

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Bullish Watch:

SLB, RVBD, PCX, JRCC, DHX, BYD, BKD, BEAV, BID, IR, MGM, LVS, SPRD, ATPG, RAX, ACI, STEC, EW, KKR, CAM

Bearish Watch:

CMG, CRM, CSTR

The Hit List contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes finished little-changed again today as some early weakness and some afternoon strength essentially offset one another.  Volume remained light, although it did improve slightly over Monday’s levels.  That’s the trend I am expecting to see this week, but it might still stay limited here as we’re caught right between two major holidays and we’ve seen low volatility in recent weeks anyway.

I typically take time off this time of year to rest up and recharge for a fresh start in January.  This year, it’s just worked out that with a new baby our travel plans have differed than in years past.  As a result, I’ve maintained a more normal routine and now find myself trading in between Christmas and New Year’s for the first time in I’m not sure when.  I’m approaching it with a limited list of setups, smaller positions, and shortened timeframes, but if things don’t pick up considerably tomorrow then I’ll likely not put out a Thursday newsletter and will instead skip Friday’s action altogether.

For tomorrow, there are a handful of setups I think could offer some potential, so I’ll focus my efforts on them and otherwise look to lay low.  I’d like to see the overall volume improve, but as I noted above, we may have to wait until January arrives in order to get that.

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: MGM, FCS, NAK, DHX, UA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

WFC, ALXN, MGM, SLW, MON, TCK, IR, FCS, AMP, JRCC, PEI, NAK, DHX, WBC, BKD, SEED, SRCL

Bearish Watch:

UA, BIDU, UAL, KMX, CMG, CSIQ, BVN, LXK, DRIV

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!

It seems traders’ minds were elsewhere today as the first trading session after Christmas inspired no significant net changes in the indexes.  We saw a weak start followed by a choppy recovery, but momentum was absent, not unlike some traders in NYC I suppose with the blizzard up there.  Whether it was the lack of news flow or traders simply sitting on their hands, it was an extremely quiet session and the increased volume I was expecting to see this week has yet to arrive.

We’re still right between Christmas and New Year’s, and the bulls are still defending the market by not allowing any significant dips.  We still have year-end cross-currents in effect for these next few days, and so with the very light volume we’re seeing I feel it’s best to take a limited list of setups into tomorrow’s session.  Each of those, by the way, will be for day trades as I’m not looking to add any swing exposure here in the midst of this drifty price action.  Once the market starts showing better liquidity, I’ll likely start adding more overnight plays, but right now I’d rather take a few quick-hit trades and wait for better conditions for movement and activity.

By the way, I’m traveling at the moment to spend some time with family, which is why I’m utilizing the written format instead of the usual video in case you were wondering. Hopefully you’ve been able (or will soon be able) to spend some time with those you love the most this holiday season!

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday, and as you see I’m keeping it pretty light. If volume is able to kick back up tomorrow, I may consider some swings in the days to come, but at the moment I’m looking to day trade right now since it’s the holidays and we’re still seeing such light activity in the market.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Bullish Watch:

MGM, LVS, WFC, SLV, ATML, PCX, MON, APC, RVBD, TCK, FNSR, IR, CCJ, FCS, BYD, VMW, AMP, BMC, ALXN, BID, JRCC, PEI, WBC, NAK, DHX, SRCL, TRLG

Bearish Watch:

BVN, UA, KMX, TIE

The Hit List contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week finished on a quiet note, just as expected, with Friday’s net changes in the indexes mixed and minor.  The DJIA added a few points, while the NAZ, RUT, and S&P 500 each finished just barely in the red.  Traders weren’t interested in making any big moves ahead of the long holiday weekend, so the bulls were able to prevent any big slips and the bears continued their hibernation.

In the week ahead, anything’s possible.  Quite a few traders are expecting more drifty action, but with such low expectations for a sizeable move, that could be exactly what we get.  I’m making no predictions – as usual – as to what’s going to happen, but I am reminding myself the trend is up and this market isn’t acting overbought.  We’ve seen quite a few narrow-range days lately, which indicates no big struggle at the moment between buyers and sellers.  It’s common when the market gets toppy to see big reversals and heavy volume on churning days, and we have yet to see that.  Therefore, it’s certainly possible we see this market ramp a bit more into New Year’s to cap off this impressive run which began in September.

When it comes to individual stocks, the consolidation we’ve seen lately has helped to create more bases, and those are going to be on my radar as we head into tomorrow’s session.  Volume should improve as the week goes on, but keep in mind we’re right between two major holidays and therefore we have fewer players at their screens and the continued presence of the year-end factors I’ve noted throughout December.  Stay on your toes if you’re trading this week, because we don’t always get typical price action right here at the end of the year.

By the way, I’m traveling at the moment to spend some time with family, which is why I’m utilizing the written format instead of the usual video in case you were wondering.  Hopefully you’ve been able (or will soon be able) to spend some time with those you love the most this holiday season!

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Monday, and as you see I’m keeping it pretty light.  If volume is able to kick back up tomorrow, I may consider some swings in the days to come, but at the moment I’m looking to day trade right now since it’s the holidays and we’re seeing such light activity in the market.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Bullish Watch:

MGM, SLV, VALE, ATML, SLW, GDX, GPS, NFLX, ABX, SLB, MON, LDK, MEE, APC, TCK, FNSR, MCP, CCJ, ISIL, APA, BYD, VMW, BMC, STEC, JKS, IDCC, MELI, PEI, NAK, BEAV, DHX, RP, BSQR, YOKU

Bearish Watch:

BIDU, UAL, MCO, MA, DRI, CMG, SOHU, TSLA, BVN

The Hit List contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff