Good evening StockBandits!

While the world celebrated the rescue of trapped miners in Chile, the market celebrated the hope of further intervention from the Fed via QE2.  It seems the minutes from the most recent meeting, which were released yesterday afternoon, were digested overnight and the buyers found more reasons to put cash to work in hopes of a continued positive response from the market.

The indexes have now reached key levels from the spring, as the NAZ cleared 2450 intraday today and the S&P crossed 1180.  We did see both of those levels given back by the close, which shows a little respect to them, but today’s move was more of a statement than anything.  The relative ease with which these levels have been reached suggests that we may go on to exceed the April highs before a well-deserved, healthy, and needed correction sets in.  After all, what’s better than a breakout to pull in the final holdouts on this rally, before some real profit-taking arrives?

And speaking of selling the news, I’ve wondered today if the market simply rallies up until the point at which QE2 is finally introduced by the Fed – and then reverses.  We’ve seen plenty of expectation rallies like that (ie: Saddam statue in 2003), so it’s not too far-fetched for that kind of scenario to play out again.  Nonetheless, it isn’t our job to predict what or how things will play out, but rather to define how we’ll navigate the moves – whatever they may be.

At this point, the trend is still up.  And while we’ve now hit the aforementioned resistance levels, we still have no technical proof that the rally has ended.  New highs are being made almost daily.  That certainly makes for a frothy environment – and a difficult one for initiating new buys for anything but the shortest of timeframes – but that’s what we’re looking at right now.

The bottom line is that I’m looking to favor the long side via shortened holding times, but I’m in no hurry to try to call a peak and short this market.  Once some cracks in the armor begin to emerge, we’ll see them and have opportunities to participate.  Until then, the walk of the tightrope continues despite the distance between current levels and August support.

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: IVN, ALGN, MTL, BYI, MCP, MTB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

BORN, IVN, IMAX, CSIQ, ALGN, JBL, PPO, MTL, BYI, FORM, OAS, LAMR, TWI

Bearish Watch:

FFIV, VMW, RAX, RHT, MCP, BBT, MTB

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 weak start this morning sparked some additional selling pressure, but it lasted less than 30 minutes.  By 10am ET, the market had established the low for the day and reversed higher, never to look back.  By the end of the session, the indexes had closed at new recovery highs, although the net gains weren’t very spectacular.

We’re in a mode right now where the market continues to edge higher, and that’s keeping things pretty tricky.  Rather than pull back with any lasting profit-taking, it’s just holding steady and adding incremental gains on a regular basis.  That’s creating a bit of a short-term rising channel, which of course follows the sharp ascent from September.  Stated otherwise, the uptrend is still intact but the pace has certainly slowed.

That alone isn’t cause for concern, as it simply prevents many stocks from being able to build new bases.  The cleanest bases I’m finding at this point are largely breakout candidates, which haven’t performed very well for swing trades recently.  The way I’m combating that is to take the trades anyway, but simply with a shortened timeframe (day trading).  In time we’ll see more setups come around, but at the moment the best thing to do is exercise some patience while waiting for more quality setups to arrive.

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: IVN, IMAX, ALGN, ZION

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DV, IVN, IMAX, TRW, ALGN, JBL, MCP, ROVI, LUK, DRIV, CHKP, SCCO, BPO, WIT, IDCC, REG, AMP, RIG, JCP, THQI, ZION

Bearish Watch:

EDU, VMC, LLL

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 new week kicked off without much excitement today as the major averages spent the day in narrow trading ranges.  With the exception of an afternoon slide, there wasn’t much of note from today’s session.  For once, the closing numbers of the minor net changes actually told the whole story.

Friday’s highs were exceeded in the NAZ, S&P 500 and RUT, with only the DJIA stopping shy of last week’s highs.  So, the levels I’m watching for the indexes haven’t changed since last night’s Broadcast.  Today’s lackluster session did help with stocks which have been trying to base, so we’ll see if we get a bit more rest ahead of some key earnings reports this week (such as INTC tomorrow afternoon and JPM Wednesday morning).

In sifting through many charts this afternoon, I found very little which interests me for more than just a few hours, so the trades I’m eyeing for tomorrow are day trade candidates.  I expect more quality bases to emerge soon, which should make for more swing candidates, but in the meantime I have no interest in forcing trades or taking on additional exposure when it isn’t justified by the charts.  There are times to do more, and times to do less, and I think for Tuesday the latter is most appropriate.

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: MCP, IVN, MTL, TMO, MELI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MTL, IVN, CSIQ, MCP, OMC, MYGN, YGE, CHKP, DRIV, ERTS, REXX, WIT, ALTR, LINTA, IDCC, INCY, FTI

Bearish Watch:

BBT, RVBD, APKT, NE, RHT, VMC, TMO, AKAM, EQIX, MELI

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!

Highly-anticipated employment data failed to produce the opening gap many expected (myself included), and we saw a pretty flat open.  Stocks moved lower in the first hour, but a relief bounce quickly evolved into an all-out upside reversal, and the lows of the day had been established.  From there, the market trended higher throughout the session.

The buyers still have peace of mind at this point, despite how far this rally has carried without a correction, that either the Fed provides further stimulus or the economy improves on its own.  Either way, the bulls have the wind at their back, and they’re doing all they can to take advantage of it.  It’s been said before that the most bullish thing the market can do is go up, and that’s exactly what’s happening as the indexes each sit at new recovery highs here.

Going forward, it’s a mixed bag.  On the news front, we have earnings season getting underway, and that’s sure to keep things lively.  On the technical front, we have overhead resistance zones from the spring quickly approaching, and that could slow the pace of this rally.  And on the psychological front, we have confident bulls and spooked bears who both continue to keep a bid beneath this market as both camps are buying every dip.

Needless to say, it’s an interesting time.  I’m in no hurry to fade this rally, and like many, I feel a bit left behind with the way this market has not looked back since turning higher to start September.   But as a trader, I realize opportunities will surface in both directions if I just continue to stay alert, so I’ll stay on my toes and keep an open mind.

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: FFIV, CHKP, HS, ERTS, TMO, EJ

Swing Trading Candidates:

EJ is in an uptrend but has been able to put in some recent rest.  The current pullback has been rather shallow, and has also held above prior resistance (which now is serving as support).  I’m watching for a trend line break at $19 to trigger a buy as this one turns back up.  As with all swing trades, my stop and target levels are on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

FFIV, IVN, DV, EJ, ISLN, ADS, MAN, MHK, HS, ATPG, HAR, ATLS, LUK, ATW, BKD, CHKP, VSH, INFY, TC, ERTS, LOGI, MDRX, BPO, A, REXX, WIT, ALTR, FDX

Bearish Watch:

SAFM, THOR, VMC, BBT, LPS, TMO, EDU

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!

Some back-and-forth price action today meant no lasting momentum, and ultimately left the major averages little-changed from Wednesday’s closing levels.  The NAZ was up fractionally, the S&P down fractionally, and it seems traders are on hold waiting for tomorrow’s employment data in the pre-market.

That’s been a big focal point for some time now, as everyone knows jobs are needed for a lasting recovery.  As is always the case though, it’s not necessarily the data that matters so much as it is how the market responds to it.  So, if the number is way out of line, expect a sizeable gap to start the day.

The overall market seems to be stalling out here though, and if that happens to get resolved to the downside, it won’t necessarily be a bad thing.  We’ve not seen any meaningful profit-taking since August, and that would certainly help to shake up the charts of individual stocks and help create some new bases from which new trades can be placed.  So the big picture seems to be stagnating just a bit here, and we’re also coming into earnings season again.  That’s going to keep things a bit tricky, so we’ll stay on our toes and avoid forcing trades for as long as this indecisiveness remains present.

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: CSIQ, SNIC, CHKP, VMC, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MMR, FOSL, GILD, BORN, MHK, MAN, TRW, DISCA, CSIQ, ALGN, SNIC, YGE, BKD, COST, ALTR, A, DRIV, CHKP

Bearish Watch:

LLL, GMCR, THOR, SLAB, V, VMC, BBT, WMS, CF, SLXP, EDU

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 major averages finished mixed today as the NAZ sold off, the S&P finished flat, and the DJIA upticked slightly.  The only momentum seen in the overall market was some mid-day selling, but even that was once again met with some dip-buying which provided a minor afternoon lift.

The real headliners today were the recent momentum stocks which got slammed such as AKAM, VMW, CRM, FFIV, VHC and CTXS.  Interestingly, those have been among the market leaders of late which have seen every dip get bought.  Today however, the selling was relentless, and that’s notable.  To see the high flyers take a big beating on heavy volume is something to pay attention to.  It won’t necessarily lead the market into a pullback if other leadership emerges, but it will give the momentum players something to ponder the next time we see more than a hint of red hit the tape.

In addition to those stocks coming under fire, I saw quite a few others which looked to be entering into rest phases with today’s bars on the charts.  That’s positive for the creation of bases and patterns from which to trade, but it might mean less action for a day or two until some of those patterns are able to mature.  Patience in trading involves waiting for those patterns to get set up properly, so let’s keep that in mind over the next couple of days.

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: BORN, ATLS, ATW, GMCR, THOR, SLAB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DV, BORN, IVN, MAN, ATPG, TRE, GPS, ATLS, TIE, LUK, ATW, YGE, AA

Bearish Watch:

GMCR, ADBE, THOR, BKE, SAFM, LLL, AGCO, SLAB

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