Good evening StockBandits!

Thursday saw some early negativity on the heels of an earnings report from tech giant CSCO, but we saw the NAZ able to erase some of its losses by the end of the session.  That decline filled the gap from early-Nov, which is healthy to see.  Friday’s action was a bit different though, in that we saw a weak open followed by additional selling and only a minor lift from the worst levels of the day into the closing bell.

We know the dip-buyers have had tremendous success since August, and they’re not likely to walk away quickly.  At the same time, we’re finally getting some profit-taking here, which is simply a part of a healthy uptrend.

The technical concern here is the fact that the NAZ has already closed beneath its uptrend channel, and the S&P 500 is threatening to do the same.  That wouldn’t necessarily spell an end to the uptrend, but rather a change in the pace of the uptrend.  There’s a big difference, and it’s worth pointing out.  The uptrend consists of higher highs and higher lows, whereas the pace of the uptrend can change and still keep the trend intact.

I do think it’s interesting that we saw new highs made and now we’re getting a pullback, which I noted as a possibility here in recent weeks.  That kind of move tends to bring in the remaining holdouts with cash on hand, which many times is faded (sold into) by institutions.  Essentially it leads to a bit of a bull trap in that those who bought high in expectation of continuation are now left holding the bag.  Time will tell if that’s the case for them or not, but in the short term we’re seeing a test of their resolve.

Heading into tomorrow’s session, there are a few setups I’ll be monitoring closely for entries.  My timeframe for these new trades will be for day trades, but once we see the indexes moving better together and not mixed (ex: NAZ below channel, S&P still inside), I do expect to be making more swing trades.

As a reminder, for a short time longer I’ll be utilizing the written format of the Broadcast as I get the new office set up with the equipment I use for recording the nightly video. Once that’s ready, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Monday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

SOHU, GPS, BIIB, SVVS, LULU, MCHP, TSLA, IRF, MEE, TGA, AMCN, JAZZ, ISIS, TROW, GTI, IOC

Bearish Watch:

FLS, V, LZ, VFC, AUXL, XRAY, LNCR, THOR, JAH, MRO, ADM, MELI, CYT, FSYS, SHLD, BIG, EMS

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

This morning we saw some weakness which took the indexes down nearly to test the levels highlighted here last night (for example, the NAZ stopped 5 points away from the 2540 area I mentioned), but the buyers found their footing and produced a turnaround in the afternoon to close each of the indexes positive.  The gains weren’t spectacular, but it was just another example of the dip buyers stepping in to do their thing and provide support on weakness.

From a technical standpoint, the daily charts of the indexes and many individual stocks look as if they could be completing short-term pullbacks.  That’s certainly subject to change, particularly on news.  For example, CSCO reported earnings tonight after the bell, and the stock is getting sold hard in the after hours.  The futures are down in sympathy, and that could deliver a downside gap tomorrow morning.

Thursday is a holiday (Veterans’ Day), but if we see a decent move on the open, it could still make for a good trading session.  I’ll keep a close eye on how the gap gets treated (if in fact we do get one), as it could again inspire buying.  If not, it may imply the short-term pullback or digestion phase has more to go, and I’ll not look to fight it.

There are several plays I’m eyeing for day and swing trades for Thursday’s and Friday’s sessions, but as always I’ll be waiting for prices to reach the triggers before making entries.  It’s easy to want to jump the gun, but waiting for the trigger helps to offer confirmation that the stock is on the move in the anticipated direction.

** Thursday night I will not have a newsletter, as we will be moving into a new house.  As a reminder, for a short time longer I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday & Friday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

IVN has pulled back within its uptrend and looks poised to begin another leg higher.  The stock will need to clear the trend line at $26.30 in order to get back on the move, so I’ll be using that as my trigger price for entry.  As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

MIPS, MAR, SOHU, BIDU, AMG, SVVS, ORLY, RIMM, CCE, MCHP, IMAX, LFT, FLR, VRUS, TRW, IVN, IPI, MAN, BBT, PNC, STT, MEE, WCC, CAR, DDS, HTZ, TEX, ROST, MTZ, PAG, UNTD, XIDE

Bearish Watch:

EAT, LZ, THOR, ADM, MELI, LXK, FSYS

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes moved briefly into positive territory this morning, but the momentum was short-lived and profit-taking kicked in.  Stocks trended lower for the remainder of the session, although they didn’t give back significant ground.  The selling was orderly and limited, and did nothing to threaten the uptrends.

Today’s pullback may see some follow through, as we still have an unfilled gap from last week extending down to Wednesday’s closing levels.  That would be a move to the 2540 area for the NAZ, and 1197 for the S&P 500.  Gap fills are common and healthy when they occur, as it’s just a natural way for the market to fill in the blanks (no pun intended).  So, it could be that we see some profit taking down to those levels or beyond, and we’ll just have to wait and see where this takes us.  The trend is still up across the board though, and the key to maintaining the uptrend will simply be whether the buyers step in again on cue once the pullback runs its course.

Setups for tomorrow are a bit limited tonight, as I noticed quite a few names putting in bearish engulfing bars.  The NAZ did the same thing today, but after a pair of narrow range sessions, that’s not difficult to accomplish.  Regardless, I’m wanting to respect the need for a pullback here.  Although many of these dips may result in good long-sided entries once the selling abates, I’m generally staying selective heading into tomorrow’s session to exercise some patience.

As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

LZ looks to be in the midst of a trend change here after a big breakdown and a potential failing bounce.  I’m looking to enter this one for a swing trade on the short side if it undercuts $107 to mark a multi-day low.  Today’s decline came on increased volume after a bounce on declining volume essentially filled a gap from a few weeks ago.  As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

MIPS, IGTE, BIIB, SVVS, CODE, CBOE, MCHP, WTI, LFT, FLR, PPDI, DPZ, IRF, TRW, VRUS

Bearish Watch:

PFCB, VFC, LZ, V, AUXL, THRX, EAT, ECL, THOR, OFC, MRO, ADM, MELI, HMIN, PWR, JOE

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The weekend apparently wasn’t quite enough down time for the bulls as today they returned without enthusiasm.  An opening gap to the downside was greeted with enough buying to lift the indexes slightly from their lows, but that was the end of the excitement as the major averages finished mixed and little-changed on the day.

While action like today’s is uneventful and the churning movement of stocks makes it easy to overtrade, it is a healthy way to digest gains.  We saw similar action on Friday after Thursday’s big pop, and this is just a natural way of movement after a big run.  The dip-buyers are still confident enough that they’re preventing declines from becoming harsh at all, and any remaining bears have also been quick to cover shorts at the first sign of weakness in order to get back to the sidelines and wait for another opportunity.  That combination is keeping a steady bid beneath the market, which essentially has made the decision between a flat and a strong market one for momentum players.  On days when they’re not active, we’ve finished flat, and when they’re in gear we run.

At this point, I’m content to let the market rest a bit and play the shorter timeframes (day trade) on Tuesday while waiting for more lively activity or more mature bases to initiate trades from.  There are some intraday opportunities, but tonight I’m not seeing much in the way of setups that look poised for multi-day moves from their current patterns.  Another day would do wonders for many charts, particularly if it’s another day of rest, so let’s see what happens.

As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

IGTE, DRIV, MAR, SOHU, SCSS, NTGR, BIDU, FORM, OAS, BIIB, WMS, RRC, MCP, ORLY, RIMM, CCE, GNK, LYB, DNR, RS, VRSN, TSLA, JKS, BORN, IMAX, JOBS, BSBR, BEXP, WTI, KIM

Bearish Watch:

V, EAT, THOR, OTEX, MRO, ADM, CYT, HMIN

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week proved pivotal in favor of the bulls, who really didn’t even need to add to their existing technical (and psychological) edge.  With a 2+ month uptrend already on their resume, the looming news of highly-anticipated November elections and the FOMC’s expected unveiling of the QE2 plan were potential market-movers.  Toss into the mix the fact that key resistance at the spring highs had been met but not yet cleared for both the NAZ and DJIA, and the stage was set for something meaningful to happen.

No one could blame the bulls for booking profits after such an impressive, virtually nonstop run since the start of September, but instead they proved they’re still willing to put cash to work and press their advantage by taking the indexes to new 2-year highs.  And while Thursday’s breakout was certainly a decisive one, the expected rest on Friday still saw a battle for a couple more points, perhaps just to remind everyone that the trend remains firmly up – both from a technical and a psychological standpoint.

Every dip has been bought since August, and while the momentum did slow recently, the trend was able to persist with rising channel patterns.  Last week’s push to new highs provided an acceleration out of the top end of those uptrend channels, which is a display of strength not commonly seen.

So at this point we have a market which is still a bit extended, yet no signs of weakness.  Just as despair is pervasive during downtrends and traders wonder whether stocks will again rise, euphoria and confidence come with prolonged uptrends and there’s a sense that stocks might not ever decline again.  Of course, neither mindset is accurate, but as traders we must be careful just how eager we get to go against the grain.  Personally, I want to trade with the trend for as long as it’s present, while becoming increasingly aware of the possibility of a pullback (or reversal) the more mature a trend becomes.

Currently we have no technical reason to worry that stocks will suddenly shift directions.  Although anything is possible – and we have certainly seen some sharp reversals this year – it’s quite likely that once this uptrend does happen to tire out, it won’t lead to an immediate down-elevator type of move.  The dip-buyers have been paid repeatedly, and they’re not likely to just walk away.  We’ll likely need to see some failed bounces before we can truly embrace the short side, but again right now the trend is still up.

Heading into Monday there are some plays on my radar, but I’m also mindful of the fact that many stocks are simply not sitting in technical patterns with well-defined entries.  Those will emerge, but patience is still an important part of trading effectively with the trend.  As we allow the setups to come and resist the urge to chase extended (and in some cases parabolic) moves, we’ll have some cash on hand to put toward those setups which do exhibit the risk-reward profiles which keep our downside in check while allowing for some great moves.  Last week we caught some of those, and I’m expecting to see plenty more soon.

As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Monday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

RRC has been recovering for a couple of months and finally looks like it could accelerate higher if it can clear resistance here.  I’ll be going long this stock if and when it clears $39.60, ideally on increased volume, to start a new leg up after a few days of quiet consolidation.  As with all swing trades, my stop and target levels for this one will be on the Hit List post here in the Hideout.

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

DRIV, IGTE, RHI, NTGR, BIDU, VHC, OAS, BIIB, UHS, RRC, BCSI, ACOM, CSC, CODE, GPC, ORLY, QLGC, NTES, CCE, GNK, CPO, LLL, LYB, UNH, ARCC, CAGC

Bearish Watch:

LZ, V, HAL, THRX, XRAY, EAT, ECL, LNCR, CRAY, HSIC, ADM, MELI, VCI

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

Trade Like A Bandit!

Jeff