Good evening StockBandits!

This week I noted the possibility of the market taking its time to absorb the news before making a big move, and it was worth waiting for.  My mention last night of “perhaps the collective market needs to sleep on it before making a decision” ended up holding some merit, and apparently that’s exactly what traders needed as today the buyers woke up eager for action.  The futures trended higher during the night, producing an opening gap to the upside this morning, and from there the market never looked back.

The technical setup heading into today was very much of the make-or-break variety, as the steep uptrend channel recently narrowed and the April highs were being tested for the NAZ and DJIA.  Today we got a truly decisive move in the form of an upside breakout on heavy volume across the board.  Even the financial stocks which have failed to participate in the rally since September (BAC, C, JPM, WFC, etc.) posted big gains.  It was a landmark day in many ways, but most notably the fact that 2-year highs were seen for each of the 3 major averages.

Anytime we see persistent strength like we’ve had for the past couple of months, it makes the trading environment a bit more tricky.  That’s because stocks tend to get caught in a vacuum, and it seems everything is going up.  That naturally limits the amount of plays available (since shorting is more difficult to do in exceptionally strong conditions), but it also makes it more difficult to determine which are the leadership stocks and which are the laggards.  There have been some leaders emerge in the past several weeks which have gone parabolic, but beyond that, many other stocks have moved nearly in lock-step with the indexes.  I say all this to make the point that with today’s acceleration move to the upside, it’s likely to bring a bit more lively market than the past few weeks have offered.

The trading environment will improve even more if we can see some more back-and-forth movement, as that allows more stocks to base and create a wider variety of patterns beyond the basic flag & pennant types of patterns which are so incredibly common in these one-way market moves.  Stated otherwise, I’m excited about what the next few months hold, as I expect the trading environment for us to improve considerably.  That doesn’t necessarily mean higher prices, because we may or may not get those, but it does mean more movement and therefore more opportunities for us.

Heading into Friday, we have the Employment Situation in the premarket, as well as a Bernanke speech during the day.  We could see another opening gap tomorrow, but my overall expectation would be to see quieter action than what today’s session delivered.  I’m content to stick with my existing overnight (swing) trades, so in terms of new trades on Friday I’m eyeing some day trade candidates which I’ll cover in more detail below.

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 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:

EAT was listed here last night as a swing candidate and did not trigger today.  Normally I’d just leave it on the Hit List without another chart being posted here while I wait for the pattern to confirm (trigger an entry) or fail (subject to removal with no trigger), but in this case I’m watching a rising trend line which is changing daily.  So I’m just updating my levels tonight on the Hit List and in the chart below to reflect the new trigger price I’ll be using for a short sale at $18.70 (where the rising trend line currently stands). As with all swing trades, my stop and target levels for this trade 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:

TMO, DRIV, IGTE, SCSS, RHI, NTGR, FCX, UHS, RRC, MCP, PSA, BCSI, ACOM, BMRN, PCX, SD, PENN, ORLY, QLGC, LULU, RIMM

Bearish Watch:

CPLA, PFCB, VFC, AUXL, THRX, XRAY, EAT, LNCR, THOR, CRM, OFC, JAH, OTEX

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The main event of the day ended up being a non-event as the indexes finished only slightly changed after the FOMC announcement and policy statement at 2:15pm ET.  The indexes were negative at one point and higher than where they finished, but in the end no lasting momentum was found.  Apparently traders are undecided at this point on just what to make of all the headlines.

I noted earlier this week how it was possible that the market could take a bit of time to digest all the news, and thus far it seems that’s what’s taking place.  Last night’s election results are widely known, and today’s FOMC unveiling of QE2 surprised nobody with the widely-anticipated size of the program.  Often times when the market rallies on expectations and then gets what it wanted, we see a sell-the-news response.  So far, however, we have yet to either rally or sell off a significant amount, and the wait continues.

We’re still right in the thick of earnings season, and of course on Friday morning we’ll have the Employment Situation, which the market has watched quite closely of late.  Stated otherwise, there’s more news to come, but the biggest headlines of the week are now behind us.  Perhaps the collective market needs to sleep on it before making a decision, but today’s action was surprisingly subdued for the magnitude of the news we received.

In terms of technical levels of importance, we did see the NAZ make a new 2-year high today as it cleared the April peak just slightly, but the S&P remains roughly 2% shy of its spring high here.  The DJIA and RUT each remained beneath their next levels of resistance at 11258 and 719, respectively.  More setups have emerged on the daily charts of individual stocks, and with the event risk now largely removed for the week, I’m looking at a number of setups for tomorrow’s trading.

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 Thursday.

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:

DRIV remains in a solid uptrend here and the most recent push to new highs came on extremely heavy volume following earnings news.  It has since pulled back on reduced volume and appears to be stabilizing here.  Today it attempted to turn up through a trend line, so I’m watching for follow through to indicate a new leg up is starting.  I’m looking to buy this one for a swing trade if the $37.15 level is crossed, and will have my stop and target levels on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

FCX has spent the past few weeks in a narrowing consolidation after a very clean rally, and this one could easily get back on the move any day now.  With the trend being up, I’m watching trend line resistance at $98.50 for a breakout to get long for a swing trade.  As with all swing trades, my stop and target levels will be here inside the Hideout on the Hit List post.

Chart courtesy of StockFinder

EAT turned sharply lower two weeks ago on heavy volume.  Since then, it has bounced in a reluctant fashion with closes well off the intraday high each of the past 4 sessions.  I’m watching the rising trend line of support for a potential break, which would trigger a short sale for me at $18.60.  As with all swing trades, my stop and target levels for this trade 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:

TMO, LDK, DRIV, UAL, MAR, SOHU, MOTR, SMOD, BGC, SCSS, RCII, VSEA, SWKS, RHI, SNDK, FCX, SOL, NTGR, PWRD, SWC, FORM, GPS, OAS, AMD, KMX, AMG, TZOO, ALB, JACK, LCC, WMS, BIIB, SVVS

Bearish Watch:

ICE, FLS, PFCB, VFC, LZ, CHRW, MON, CF, XRAY, PVH, EAT, GES

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes gapped higher today, showing no concern for today’s election outcomes or tomorrow’s FOMC implications.  The market dipped slightly from the opening highs, but held its ground in positive territory while essentially churning for the remainder of the day.

Today’s price action held consistent with the recent domination of the bulls, as they seem confident at this point regardless of the outcome from any news flow.  From a technical perspective, the NAZ is testing its highs of the year here, which is interesting how that timing works.  Many times the technicals tend to coincide with scheduled news, and the headlines in this case could either produce a breakout or a rejection of the highly-important 2535 level.  The RUT was able to clear some important short-term resistance today at 710 and could now be free to advance further, so long as the other indexes avoid any downside reversals from here.  Meanwhile, the S&P and DJIA remain slightly beneath their spring highs and will need just a bit more help to get over those humps.

Tonight’s election results are likely to be digested tomorrow, but the main event will be the FOMC announcement at 2:15pm ET.  Many expect the Fed to unveil more info regarding further quantitative easing (QE2).  Expectations for further stimulation from the Fed have helped prompt the current rally, as the bulls see a win/win scenario with aid from the Fed or an improved economy, whichever happens to come first.  Toss into the mix the technical traders who recognize an uptrend, and there’s logic to support buying the dips until it fails to produce profits.

Heading into tomorrow, my game plan is to keep my timeframes for new trades brief once again.  It’s going to be a day where headlines will dominate, which could mean a morning gap, some early-afternoon fireworks, both or neither.  The best way to manage risk is to maintain stops at all times, so my intention is to participate in the action via day trades rather than adding more overnight exposure.  I expect more setups to arrive soon, but for now I’d like to see the dust settle from all this scheduled news and then go from there.

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:

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:

ATHR, CMG, MCP, ATW, AA, OAS, KMX, SOHU, PCX, AEM, SFY, CSC, CCME, PENN, GRA, DMAN, BGC, JACK, BXP, CAR, UAL, FCX, BYD, SONC, CAVM, LCC, BIIB, AMR, SVVS

Bearish Watch:

MS, ICE, AUXL, VFC, PFCB, HAL, MMM, BUCY

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Despite the big news on tap for this week, buyers returned from a couple of days off to spark some early strength today.  A gap up open was followed by some additional strength, but soon we saw profit-taking kick in as traders recognized a good opportunity to raise some cash.  That turned the tide and erased the day’s gains, taking the indexes into the red by the afternoon.  In the end, the net changes were once again only minor and essentially flat, and traders  collectively remained unwilling to commit big with all the pending uncertainty of elections tomorrow and the FOMC Wednesday.

It’s easy to read too much into the action here, but it’s not very useful.  In recent sessions, we’ve seen minor gaps get filled in both directions, so it’s not as if there’s any real consistency emerging.  The common thread is indecision, as the lack of momentum or directional bias simply shows the market is churning in front of very highly-anticipated events in the next couple of days.  It could be that we see a decisive move as the news comes out, but it also may take the market a couple days to digest it.  If so, we’ll stay patient and wait for some reliable signals to arrive.  Either way, expectations are running high at the moment, which means there’s ample room for disappointment to creep in if something doesn’t unfold as anticipated.

My game plan heading into Tuesday is still the same, which is to keep my timeframes for new trades abbreviated.  As a result, I’m eyeing some day trades, knowing it’s the best way to manage additional risk with all the news we’re likely to see in the next couple of sessions.  More setups are building for multi-day swing trades, so I’m keeping them on the radar as well.  As they become ready for plays, I’ll certainly highlight them here.

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:

AMG, WDC, AA, ATW, CMG, VCLK, FMC, URS, CY, BYI, OAS, PCX, PWE, SPRD, IOC, PENN, GRA, CRZO, SLB, BEXP, GRMN, JACK, BXP, CAR, DFS, GGP

Bearish Watch:

CREE, LL, V, MS, JOE, FLR, TSL, AUXL, JLL, PFCB, VFC, FLS, MMM, BUCY, HAL

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

Trade Like A Bandit!

Jeff