Good evening StockBandits!

The opening 40 minutes today was filled with selling as the major averages moved into negative territory with some decent velocity.  The initial bounce turned into a reversal though, and the lows of the day were established.  From there, a steady rebound took the indexes into positive territory, and despite some back-and-forth action in the afternoon, that’s where the market finished.

Last night here I mentioned the presence of dip-buyers and how that’s the key to this market, and today we saw them step in again and get paid for doing so.  Until that dynamic changes, we can expect the bulls to maintain a bid beneath this market.  It may end up taking more than one selloff before they walk away, too, as they’ve had big recent success with aggressive buying.

More basing action would still be very helpful to the charts of most individual stocks, as we have only small bases out there for the most part.  For that reason, I’m eyeing some day trades for Wednesday in order to participate in the market movement while still appropriately managing my risk.

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: SOLF, CSIQ, YGE, SNDK, GS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ATHR, LAZ, TKR, PANL, PHM, RYL, RRC, NFLX, MAN, DGX, BLK, SMT, TDC, N, MASI, SOLF, LEN, CSIQ, PVH, DHI, VECO, ULTA, YGE

Bearish Watch:

JKS, ADBE, SNDK, AMAG, DRI, WFC, GS

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 weekend apparently left the bulls feeling the need for a rest, because they took one today.  After spending only a brief time in positive territory, some afternoon selling ultimately made the difference as the indexes finished slightly negative on the day.

Only a portion of Friday’s gains was given back today, which is positive.  Some additional basing action and perhaps even a deeper pullback would still be fine for this market, and would not threaten the uptrends which have emerged over the past few weeks.  The intermediate-term situation of a higher high and higher low is still a big positive for this market, so we’ll keep that in mind even if we see more selling emerge.

Right now, there are quite a few individual charts which are bullish, although more rest is needed for the majority of them.  We’ve come a long way in a short period of time, and a single day of minor downside does little to change that.  The dip-buyers are still out there though, so let’s see how intent they are in the next couple of sessions to avoid letting prices slip.  That should give us a better gauge of what to expect from this dip.

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: DLB, CNX, SWN, ALXN, VPRT, LEN, SOLF, VMC, JPM, GS, DRI

Swing Trading Candidates:

DRI turned lower recently and has struggled to bounce.  Here it looks vulnerable to another turn lower, so I’m eyeing it for a short sale.  A break of the rising trend line at $43.20 will trigger an entry for me as this one starts another leg down.  My stop and target levels for this swing trade will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

USG, DLB, DO, SANM, VPRT, NTES, SMT, N, ALXN, WCC, SINA, GDP, LCAPA, SID, SOLF, LEN, DISCA

Bearish Watch:

X, MET, MON, CREE, CNX, SAFM, VMC, SNDK, JPM, BKE, WFC, DRI, SWN, UPL, GS, MET

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!

Last week started out with a Monday rip to new highs, adding to the prior Friday’s minor breakout and clearing the June highs.  That confirmed a higher high and a higher low in the intermediate term, but it did leave the market quite stretched to the upside after the run which began Sept. 1st.  We drifted only slightly lower for the next 3 sessions, only to gap big on Friday and go out near the highs of the day to mark new recovery highs.

To see a market run with momentum isn’t much different than an individual stock, as there are traders on the right side who don’t want to let go and traders who are trapped and must exit at bad levels.  Right now, anyone short this market is feeling the pain, and those who are long know it.  That means the dips are extremely shallow and short-lived at the moment, which is keeping the accelerator on the floor.

We’ve come a very long way in a very short time, and although a rest would be quite healthy, there’s still no sign of one yet.  Underperformance is a major factor in the market for those who manage funds, so when the market takes off, underinvested money managers are forced to chase in hopes of making up for lagging performance.  That’s a big reason right now we’re seeing relentless buying, especially as the end of Q3 arrives this week.  And as the calendar progresses, the year-end could quite easily spur this same performance anxiety.

There are a number of good reasons for this bullish move.  A potential higher low was established in August, and with key support zones holding, the buyers have piled on to build this momentum.  We also have the catch-22 situation of either an improving economy or a Fed which is willing to add further aid, which is a win/win for the bulls.  The only problem is finding a spot to jump on board without being among the last to buy into this phase of the rally.

I’m not inclined to chase here, as there are a ton of individual stocks which are bullish yet very extended.  That’s a highwire-type scenario, and it’s just incredibly likely the easy money has long since been made for this particular run.  Waiting for a pullback or a rest is far better in terms of managing risk, and one of those two will arrive, allowing new setups to build and stocks to somewhat reset for a possible second run.

In the meantime, the NAZ is working on filling a gap from mid-May as each of the indexes start to approach areas of overhead congestion, so this is a time where exercising some caution is certainly warranted.  Abbreviated timeframes for new trades is best, at least until some basing action is seen.  Getting left behind and facing the feelings of being underinvested in a runaway market is never fun, but chasing overextended stocks after a major lift often proves to be costly, and that’s even worse.

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: GDP, FORM, MASI, MMR, SNDK, JKS, IMAX

Swing Trading Candidates:

IMAX recently cleared an important trend line with a solid multi-day advance, and since then has put in some needed rest on light volume.  This one looks set to make another move higher if it can clear $17.20, so I’ll be a buyer there if it gets on the move.  My stop and target levels for this swing trade are on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

GDP, PVA, MMR, LAZ, SPRD, AGCO, DO, SHLD, TTM, IPI, RIG, RRC, BIG, FORM, EXXI, STP, IMAX, GSM, XRTX, TDC, VCLK, TRW, N, DE, MASI, ALXN, WCC, NTGR, AXP, SINA

Bearish Watch:

EGO, JKS, SKX, SAFM, VMC, SNDK

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!

Minor declines on Tuesday and Wednesday served as reminders of the presence of dip-buyers.  With the market having run sharply higher since the first of the month, any remaining shorts were quick to cover into weakness, and bulls with cash on hand were itching to put it right to work.

This morning, we saw a very soft open which left stocks pulling back deeper, opening the door for some more intense selling if the bulls were at all panic-prone.  However, the weakness proved to be yet another opportunity to buy, and soon the market had filled its gap and was back into positive territory by mid-day.

Rather than rip right back to new highs though, stocks leveled off and then drifted lower into the closing bell, finishing just slightly negative on the day.  We’ve now seen a very shallow 3-day pullback, which is about as good as it gets for the bulls in an extended market like this.  Tonight they have grounds for encouragement after avoiding a sharp pullback, so let’s see what they do with it.  My hunch is that after a big nonstop run and a very shallow dip, it’s going to take something more significant to damage the confidence of the buyers.

Further rest in this area, or even a slightly deeper dip would be perfectly fine and not a threat to the health of this rally.  In fact, it would likely prolong it by offering a potential secondary move higher.  Whatever happens, it’s sure to be an interesting environment for the foreseeable future as emotions are running high on both sides of the tape.

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: VCLK, SINA, DISCA, EJ, IMAX, TDC, STP, EXXI, NAV

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FFIV, ASIA, SPRD, MCP, NTES, CHS, KGC, OPEN, PRGO, ORCL, EXXI, STP, TDC, TRW, N, VHC, REE

Bearish Watch:

JKS, NAV, SAFM, TW, VMC

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!

Early volatility today was followed by several hours of choppy action, leaving the indexes slightly underwater by day’s end.  The selling never picked up any steam, and the buyers stayed away for the most part, allowing the market to put in a day of much-needed rest.

The bulls who are invested at this point can’t ask for anything better, as this is essentially a “time” pullback more than it is in price – so far anyway.  The market is pausing here after a huge momentum run, rather than giving back much ground, and that’s healthy price action.  The bears and the underinvested bulls are in the same camp as they both want a deeper pullback.  They may still get one, but for now, their wait continues.

In sifting through many charts tonight, I did see more stocks which have been able to put in a little bit of consolidation.  Another day or two would do wonders for many charts, and if we see more rest in this area, we could have our hands full with bull flags and pennants on the daily chart.  Right now, the key is to wait and allow those charts to set up.

There are some setups I’m eyeing for tomorrow’s session, and I expect there to be more coming in the days ahead.

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: ORCL, SPRD, STP, PRGO, CSTR, VMC, ICE

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MMR, SPRD, DO, SWC, OPEN, GOL, PRGO, ORCL, ADM, PAAS, BG, STP

Bearish Watch:

CREE, XEC, CSTR, SKX, COG, OSK, VMC, YHOO, BEN, URS, ICE

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