Good evening StockBandits!

Last week the major averages were able to push slightly higher on a net basis, although the day-t0-day action certainly lacked excitement.  This keeps the existing uptrends intact, but there’s no disputing that the pace of this advance has slowed considerably in recent weeks.  That slower pace has meant more concentrated momentum in select names, but for the overall market it has also brought some basing action and rest – two things which were severely lacking in the early stages of this rally.

The question on the minds of traders right now is whether a pullback will happen sooner or later.  With the spring highs not far above, traditional wisdom would suggest we could see some profit-taking before an attempt at new highs is made.  However, this market has been anything but traditional in the way it has moved this year.  That said, we could see new highs get established first, with profit-taking coming afterward.  That kind of move would likely suck in the remaining holdouts of this rally, providing the technical proof that this strength is for real – only to turn lower.  The market is known to cause widespread frustration, so that’s one scenario to consider in the days and weeks ahead.

At any rate, this rally has continued to exhibit good health along the way.  The higher lows which were established with the August lows (compared to July) have left shorts needing to cover and bulls with cash feeling the pressure to chase strength.  Those two factors have combined to keep dips both shallow and short-lived for the past several weeks, and we’ve seen a steady lift as a result.

My game plan at this point is still somewhat simple.  Earnings season is underway, and that demands we keep an eye on the calendar to avoid any surprises.  Beyond that, there are setups offering potential in both directions, and I’m looking to trade them accordingly.  My preferred timeframe of choice right now is still day trading, as that’s been such a good way to participate in some of these moves while still managing risk in an appropriate way.  However, there are some multi-day plays I’m in and another one tonight I’m setting up for a potential entry in the days ahead.

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. My wife and I are expecting our 2nd child in December, and needed more space for the growing family. Once we’re settled and 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:

FLR dropped suddenly on heavy volume just recently, and since then the rally attempt has been weak and on light volume.  This has created a small rising trend line, and a bear flag-like pattern.  I’m watching for a break of the trend line at $49.20 to trigger a short sale.  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:

HOGS, FOSL, FSYS, ATHR, BVN, GILD, APC, CNW, VCLK, VHC, REE, BCSI, MIPS, MEE, PXD, ATW, AA, RINO, LAMR, CHRW, KMX, GBX, CLI, SMOD, ADTN, CTRP, FCEA, NVTL, AMG, TSTC, AUMN, AMSC, XRAY, CSC

Bearish Watch:

CRK, IVN, MON, SWN, OSG, JKS, LPS, EQIX, MS, JOE, APOL, FLR

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes found strength during today’s session to push to new recovery highs, but the short-term breakout attempts ultimately failed.  Stocks slid back to the flat line by the closing bell, erasing the day’s gains and leaving the major averages back beneath resistance zones which have been carved out in the past few days.

Today’s action therefore is a continuation of the rest phase which we find this market in.  To see short-term resistance cleared intraday and a failure to finish above those zones iss a reminder that the close is what’s most important when watching for breakouts.  The overall health of the market remains strong, but with the indexes having reached congestion zones from the spring, it’s logical to see some hesitation take place – at least initially here.

The indecision we’re seeing right now is holding some influence over my preferred trading timeframe, as follow through is simply harder to come by when in trading ranges.  Last night’s day trade candidate in SHLD is a prime example, as the stock made a great move higher ($2.42) through the trigger, but the strength was temporary and the stock ultimately finished back beneath the trigger zone.

The bulls remain in the driver’s seat here, so it will be up to them whether or not this market ultimately goes higher or lower in the near term.  If there’s a growing sense of concern that the spring highs won’t be cleared, we could see this pause morph into some profit-taking.  However, if the dip-buyers grow impatient once again, we could see more cash come off the sidelines and propel stocks higher once again.

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. My wife and I are expecting our 2nd child in December, and needed more space for the growing family. Once we’re settled and 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:

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

Chart courtesy of StockFinder

Bullish Watch:

HOGS, FOSL, NAV, APC, RVBD, SMT, TRW, VHC, RTN, ZAGG, AGCO, CF, ATW, IDCC, BIDU, SOHU, GBX, CLI, SMOD, WDC, ISIL, CTRP, FCEA, NVTL

Bearish Watch:

MMR, IVN, KGC, PVH, MHS, OSG, LVS, JBL, MICC, JKS, LPS, EQIX, MELI, MTB, JOE, APOL, FLR, URBN, TSL, ADTN

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

It’s good to be back with you tonight after taking care of some personal things the past couple of days.  I’d much rather have been monitoring the markets and trading more actively these past two days than dealing with the sale of our house and our subsequent move!  At any rate, I’m back in the saddle and glad to be here.  I hope your week is going well so far.

Before we get going, I just wanted to let you know that this morning early I posted a comment beneath the Broadcast to update my stop on FFIV, as well as on Twitter, so be sure you check those channels of communication periodically and feel free to use them yourself for questions or comments on the price action out there.

Since my Sunday evening update (published Friday night), we’ve seen some decent back-and-forth price action in the overall market.  On a net basis, that hasn’t left the indexes in much different shape than where they ended last week, but it has helped individual stocks in a couple of ways.  First, the Tuesday slide helped some of the stocks which have shown relative weakness to stand out as true laggards.  Second, it has served as a consolidation phase over the past few sessions, helping to define some short-term resistance and support zones.  That’s leaving quite a few sloppy flag-like patterns, so we’ll continue to monitor their development in the coming days.

Today’s rebound was an important one to the bulls – not strictly from the standpoint of holding current levels on a technical basis, but from a psychological standpoint.  To see the indexes unable to gather much downside traction, as well as continuation from Tuesday’s late-day bounce, serves as a reminder that dip buyers are still present.  I’m holding off on aggressively shorting until we see a true change of character, and as of yet, we have not.

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. My wife and I are expecting our 2nd child in December, and needed more space for the growing family.  Once we’re settled and 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:

JOE broke down hard recently and since then has only been able to bounce a small amount.  This one has consolidated in a narrowing fashion, creating a clean bear pennant pattern.  I’ll be going short if this pattern is confirmed with a break of the $20.20 level.  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:

AEO, BORN, SHLD, MBI, CNW, MFC, IMAX, HNR, ZAGG, MYGN, AGCO, CF, WIT, IDCC, TWI, KMX, DAR, WNR, TRGL, GBX, CLI, PCX, HK, SMOD, AIR, TEX

Bearish Watch:

DV, SKX, SAFM, LPS, CTXS, EQIX, MTB, JOE, APOL

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes pushed higher last week to reach new recovery highs and some key resistance zones as well.  That keeps the uptrend intact, and brings the market into a congestion zone from the spring as the 2010 highs come into view.

What was quite impressive was the fact that earnings disappointments were completely disregarded from big names like INTC and JPM.  That shows the resolve of the bulls at this point, and affirms the notion that there’s ongoing underlying strength out there.  With the majority of companies still slated to report earnings in the coming weeks, however, there will be no shortage of news to digest.

The big question at this juncture is whether or not the major averages can push right through the aforementioned resistance zones.  We’ve already seen the NAZ push beyond 2450, but the S&P 500 has failed to reclaim 1180 on a closing basis after two intraday attempts this week.  Given the recent success of the bulls though, it’s unlikely they’ll give up quickly.

Overall, the tone of the tape continues to be one of optimism.  Dip buyers have repeatedly stepped in to provide support on even shallow pullbacks, and every time have been paid for it.  In the bigger picture, the focus remains on the economy.  The bulls have the hope of an improving economy, and the reassurance of further action from the Fed if that doesn’t happen.  That’s definitely keeping the wind at their backs for now, and they’re capitalizing on it well.

A number of stocks are still acting well, and some still need rest after the runs they have made.  Tonight’s video runs through several setups to put on your radar, as well as the setups I’m eyeing for Monday’s trading session.

** One final note is that I will not have an update on Monday night or Tuesday night. With baby 2 on the way soon, we’re moving to obtain more space and so this is the first portion of that phase. Anyway, just wanted to let you know that this week there will be 2 nights (Monday & Tuesday) on which there will be no update.

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: TRE, PWRD, WYNN, CLR, TWI, OSG, CTXS, MTL, HS, KMX, EQIX, PLD

Swing Trading Candidates:

PLD cleared prior highs a few weeks ago and has entered into an uptrend.  Currently it has pulled back just slightly within the trend, creating a descending trend line which I will be using as a pivot for a buy at $12.80 if crossed.  As with all swing trades, I’ll have my stop and target levels listed on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

MTL, SGY, IMAX, WPRT, PXD, HS, ACM, ATPG, TRE, HAR, AGCO, ATW, MDRX, ALTR, EC, JCP, TWI, KMX, PLD, PWRD, BBY, WYNN, DE, SOHU, PMI, CLR, DAR

Bearish Watch:

FFIV, ARUN, SAFM, OSG, THOR, LPS, CTXS, TSN, EQIX, UTHR, MS, LAZ

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 day after temporarily pushing past some important levels, the NAZ and S&P 500 each took a breather today.  The indexes were down just slightly across the board, but the damage was quite insignificant and it truly was just a day of rest.

That’s in keeping with how things have been in the past few weeks, as the market has slowed its pace from the early-September ramp, and lately has been just grinding its way higher.  That’s not a problem, as it has certainly kept the uptrend intact, but it leaves less momentum for short-term trading.

So tonight, we’re still in areas of prior congestion from April and May, but there are no technical reasons to be concerned for a downside reversal.  Today’s dip was insignificant, volume was down, and the market is still in good technical shape.  The benefit is that these rest days do help individual stocks to be able to base a bit, and that’s what most charts need the most right now.

One final note is that I will have a weekend newsletter (typically on Sundays, but this weekend it will be either Friday or Saturday) for Monday’s trading session, but I will not have an update on Monday night or Tuesday night.  With baby 2 on the way soon, we’re moving to obtain more space and so this is the first portion of that phase.  Anyway, just wanted to let you know that next week there’ll be 2 nights (Monday & Tuesday) on which there will be no update.

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: BYI, MDRX, EQIX, GMCR, FFIV

Swing Trading Candidates:

FFIV spent many months in an uptrend until recently when it saw an abrupt change of character with a high-volume downside reversal.  That quickly negated the breakout it had just produced, and since then the attempt at a bounce has been quite poor.  I’m eyeing this one for a turn lower from here as a failed-bounce candidate, so I’ll grab it for a swing trade on the short side if it cracks the $94.90 level.  As with all swing trades, I’ll have my stop and target levels on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

MDRX, ISLN, ENDP, ZUMZ, IMAX, SGY, BKE, PVH, GNW, EMR, VMED, LVS, PPO, TRE, BYI, KMX, HOTT, CHRW

Bearish Watch:

FFIV, NTES, OSG, GMCR, BBT, AKAM, LPS, CTXS, EQIX, MTB, UTHR

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