Good evening StockBandits!

The winning streak of the NAZ was ended today with a minor loss as afternoon weakness made the ultimate difference.  The market was range-bound for most of the day, until the FOMC decision brought new highs for the session.  The strength was short-lived, however, and we saw some minor profit-taking into the closing bell.

Although some bulls may have preferred to see the market continue climbing, today’s tiny decline was about the next-best thing.  We didn’t see selling accelerate once the NAZ and S&P 500 went negative, and that indicates there’s still a fair bid beneath this market for now.

Today’s achievement of a new recovery high and a finish in the red does point to some short-term fatigue, which is certainly understandable at this point.  The downside reversal, at least initially, could have been far worse after the run we’ve just witnessed.  Instead, minimal losses were posted on the day, so the bulls are likely to feel good about that tonight.  I would expect the next dip, whenever it arrives, to remain relatively shallow due to confident bulls putting cash to work on a pullback.  In the intermediate term, we’ve just seen a higher low and higher high established, which suggests more upside to come in the weeks and months ahead.  We could see a quick initial rush to lock in some profits, but with the technical picture as it is, I wouldn’t expect much more than a quick pullback at this point.

With the short-term picture very tricky here (lots of recent momentum, but extended to the upside), I’m only eyeing some day trades for Wednesday.  It’s difficult to make new buys here, and yet we still have yet to see real weakness arrive.  Stay on your toes out there.

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: OII, SMT, KGC, CSTR, SKX

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SRCL, MCP, KBH, OII, GMCR, NE, SWC, SMT, KGC, MDCO, OPEN, NEM, FORM

Bearish Watch:

CREE, CSTR, SKX, NTRS, SM

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 night I mentioned I had a prior commitment today and wouldn’t be able to put out a newsletter, but a schedule adjustment made room and here I am.  I’d always rather under-promise and over-deliver.

Today’s market action was noteworthy on several fronts, and all of them were positive.  Not only did we see the indexes tack on solid gains across the board, but the buyers maintained their recent momentum.  Also of note was the fact that the June highs were eclipsed for the NAZ and S&P 500, while the DJIA cleared the August peak as new recovery highs were made from the summer lows.  That confirms the higher lows we recently saw established on the daily charts of the indexes, which is extremely positive for this market as the 4th quarter quickly approaches.

When it comes to concerns for this market, the only one I currently have is that this rally is getting a bit too hot.  The RUT is the lone exception, as it did spend most of last week basing and is therefore not stretched at this point.  However, the big 3 have become overbought here, which is very hard to argue when the NAZ just posted its 12th gain in 13 sessions.  It’s rare that we see runs like that, and although the bigger picture contains many positives (higher lows, higher highs), in the short term this market is likely getting primed for some profit taking sooner than later.

So with the charts telling us tonight what they are, things are certainly bullish and looking up.  Regardless, it is a difficult spot to be adding much long-sided exposure, and that’s important to keep in mind here.  The best bet would be to buy the next dip, provided it’s relatively shallow and arrives on somewhat benign volume.  For now, it’s a waiting game though as we wait for that dip to begin.  When the bulls have momentum, they sure find it hard to back off the accelerator.

Tomorrow we have the FOMC announcement on interest rates and the accompanying policy statement, which is always a big event for the market to digest.  It could be that we see that news, whether positive or not, used as an excuse for some selling to kick in, so it’s of course a time to stay vigilant and watchful for a possible short-term peak to be set as this rally reaches crescendo levels.

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: CHS, SMT, CSTR, IAG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FOSL, DPZ, BXP, QSFT, PSA, SPG, RIG, NFLX, GMCR, MAN, WLT, CHS, ENDP, BIG, NE, SWC, SMT, MFC, BRE, ADS

Bearish Watch:

RIMM, CREE, CSTR, IAG, 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!

Friday’s option expiration session ended up largely being a non-event, although the indexes were able to tack on some minor gains ahead of the weekend.  Each of them cleared key levels intraday, with the NAZ and DJIA being the only ones able to break out on a closing basis (at 2309 and 10600, respectively).  The S&P 500 crossed 1131 briefly, but finished a few points shy of clearing multi-month resistance at the close.

To see the indexes break out in a reluctant fashion like that leaves much to be desired for the bulls – initially at least.  It is somewhat understandable that after such a big run, upside may be limited until some further rest can set in.  However, technically it’s more ideal for a rest to come before that breakout attempt rather than after it.  Nonetheless, the buyers remain in control for now, and there’s no reason to fight that yet.

With that said, the reality here is that this market isn’t at all out of the woods yet.  Having 2 of the 3 major indexes clear resistance by just a few points isn’t enough to trust this to stick yet.  We’ve just run right up since the beginning of the month, so it wouldn’t be unusual to see some profit-taking arrive in this area.  The bulls have established higher lows (relative to July), so that may invite more cash off the sidelines if we happen to see either some consolidation or a shallow dip.  That would likely offer the best setup for a follow through move higher in the weeks to come.

Please note:  due to a previous commitment I have on Monday, there will be no Broadcast.  I will return on Tuesday evening with the next 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: CHRW, RIG, NAV, SNDK, SPG, CREE, MHK

Swing Trading Candidates:

SPG is in the midst of an uptrend and yet currently it’s basing to digest the most recent run.  This one appears poised for another advance if it can clear the $96 level, so I’ll be a buyer if that level is crossed.  As with all swing trades, my stop and target levels for this trade will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

CREE just recently broke short-term support, and although the stock has bounced back a bit, it has been unable to reclaim that level.  A turn lower from here and a multi-day low at $50.60 will trigger a short sale for me as this one again comes under pressure.  As with all swing trades, my stop and target levels for this trade will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

MHK has been climbing in recent weeks, but the volume which has accompanied it has been very poor.  Given that this stock is largely range-bound, I’m watching for a break of the lower rising trend line at $47.90 to trigger a short sale and prompt a move back down toward the lower end of the range.  As with all swing trades, my stop and target levels for this trade will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

SRCL, BXP, WLL, EJ, BKD, CHRW, QSFT, SPG, VNO, FRT, EQR, RIG, VPRT, MCO, FMCN, GMCR, RES, CHS, RVBD, APKT, SVN, BLK, ENDP, CPX

Bearish Watch:

XEC, JKS, CREE, CSTR, NAV, V, SAFM, IAG, SNDK, NTES, MHK

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!

Rest is what this market has been needing badly of late, and today we saw a little bit.  The indexes finished right near yesterday’s closing levels, once again respecting key resistance zones which they’ve been contending with in recent days.

Some additional consolidation in this area, or even some profit-taking, would be an ideal situation for this market.  A gap remains unfilled from Monday of this week, and after seeing big runs off the August lows, this market could stand to do some backing and filling.  That would allow many more charts to reset patterns, and may even shake out some of the weak holders before a bigger breakout attempt is made.

Should we happen to see a breakout occur tomorrow, I’ll respect it, but I will lack trust in its ability to stick – at least initially.  It’s options expiration day tomorrow, which always brings some unusual motives into play, and in this case it’s the end of the third quarter as well.  With that said, if we do see key levels get crossed, it will be the close I’ll be most interested in.  Regardless, in most cases this is a very tough spot to get long, as well-defined stop loss areas simply are hard to come by in a market which has seen advances in 10 of the past 11 sessions.  So, stay on your toes out there tomorrow, as it could be a tricky one.  I’m planning to keep my timeframes generally brief because of that, and hopefully next week will offer more opportunities to participate on a multi-day timeframe.

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: MON, RIG, FMCN, GMCR, SNDK, MCO

Swing Trading Candidates:

MCO just saw a big advance on heavy volume, which has since been followed by a shallow dip on light volume.  This indicates the stock may have more room to run, particularly if it can clear the small descending trend line just above current prices.  I’ll be a buyer for a swing trade if this one can clear $25.05.  As with all swing trades, my stop and target levels will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

FFIV, AEO, LAZ, MON, PH, TCO, MMYT, NZ, QSFT, RIG, FMCN, MCO, GMCR, MAN, WLT

Bearish Watch:

CREE, SKX, SAFM, COG, VIP, IAG, OSK, VMC, DGX, 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!

The major averages approached key levels for the second straight day today, although once again those zones were not penetrated.  After backing off their best levels in Tuesday’s session, a soft start this morning opened the door for some profit-taking to kick in.  Instead, the buyers got to work, bidding stocks slightly higher to take them positive on the day.

Tonight, the market is sitting just shy of key resistance zones (2309 NAZ, 1130 S&P 500, and 10600 DJIA), so we could see an attempt at a breakout take place any day now.  And while the buyers do have momentum, this market is stretched at the moment and badly needs to rest.  A straight-up run of 200 points on the NAZ, for example, and a push right through a key level may prompt more selling than buying, so this is an important time to stay on our toes.

In terms of new trades, the one-way nature of this 2-week rally leaves only brief bases for the most part on the daily charts.  So without chasing stocks too far here, my opinion is that the best way to offset new buys is to keep my timeframe short, which means day trades for Thursday.  There are a couple of short candidates as well, but essentially I’d like to see some rest arrive before I look to add much overnight exposure at current levels.

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: QSFT, CREE, CSTR, SKX, RIG, CHRW, TCO, NZ, JKS, XEC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

VPRT, RIG, HCP, TSLA, SPRD, CHRW, TCO, ISLN, IPI, QSFT, NZ, OII, PSA, SPG, LEAP

Bearish Watch:

MMR, JKS, ECA, XEC, CREE, CSTR, SKX, SAFM, COG, VIP

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