Good evening StockBandits!

The key resistance zones we’ve been watching here for the past couple of weeks came right into view today as the major averages each got to within spitting distance of those zones.  The NAZ stopped just 7 points shy of 2309, the S&P 500 stopped 3 points shy of 1130, and the DJIA got within 12 points of the 10,600 level.

From there, each of them backed off slightly, giving us both validation of those levels (again), as well as an indication that perhaps a rest might finally be a stronger possibility.  The move we’ve seen off the August lows has been swift and impressive, and a rest at this juncture wouldn’t at all be a sign of weakness.  Instead, even a brief pause of a few days without giving much ground back would actually be a sign of health for this market.

With higher intermediate-term lows looking like they’ve been established, the bulls wouldn’t mind making a breakout attempt a successful one once it happens.  From a technical perspective, the best way to achieve that would be after some rest, rather than pushing just slightly beyond those key levels and quickly reverting back beneath them due to this market being extended in the near term. Time will reveal to us how it will all play out, but for now, the bulls have an encouraging sign tonight with the indexes having stopped just shy of key levels.

Tonight after looking through many stocks, my watch lists have thinned a bit due to the market showing some signs of fatigue after this run.  That’s entirely alright, although there are a handful of names on my radar for day trades tomorrow.  Once some consolidation can be put in, I would expect to see many more swing candidates showing up on the Hit List, and that may only be a couple of days away.

As a reminder, I’m still utilizing the written format of the Broadcast as I’m away from the office and therefore without the equipment I use for recording the nightly video. My family and I have done some house-hunting in recent days, and before the week is out 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:

CAB, EJ, CHRW, BKD, TCO, RRD, ISLN, GGAL, MBI, PHM, KBH, RYL, CML, CNW, ATK

Bearish Watch:

CYH, MMR, ECA, CSTR, NAV, IR, APC, CNX, SKX

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

September continues to buck the historical trend this year, as ever since the first came along two weeks ago it’s been up, up, and away.  That move has included more then an 8% rise from the August lows for the NAZ in just 8 sessions, which is a pace that’s hardly sustainable.  Nonetheless, the buyers have momentum at the moment, and they’re undeterred in their buying efforts.

Today as a new week began, more key levels were neared or cleared in each of the indexes.  The NAZ completely filled the gap to 2277 from August 11th we’ve been watching, the DJIA pushed past 10,480 and is sitting just shy of 10,600, the S&P 500 is fast approaching 1130, and the RUT is well clear of 639 on its way toward key resistance at 670.  That’s technically great for this market, but the story isn’t that simple.

For one, the August highs are still overhead and will likely not be easy levels to vault beyond.  In addition, stocks and the indexes are each becoming rather short-term extended with this rally.  Those two factors combine to make it more difficult for this ramp higher to continue, given the difficulty in buying stocks at current levels as well as the temptation for many to book profits just shy of major levels.

In the bigger picture, this strength bodes well for the higher-low scenario to become a reality.  We already have established higher lows in each of the averages, but a move above the prior intermediate-term highs will be needed to truly confirm those higher lows.  The trouble here is seeing a market which is generally too extended to buy, yet still too strong to short.

My inclination here is to do less and be patient.  We could see some further upside from here, but most likely a pullback will arrive sooner than later.  We may simply get a rest in which stocks mark time without giving back too much ground, but either way some consolidation or basing action is needed.  We’ve moved swiftly back up toward the upper end of a multi-month trading range, and that could involve a pretty good battle before that level is reclaimed.

I’m still utilizing the written format of the Broadcast as I’m away from the office and therefore without the equipment I use for recording the nightly video.  My family and I have done some house-hunting in recent days, and before the week is out 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:

CYH is in a downtrend but in the past two weeks has bounced back up to test former support.  The stock seems to be struggling with that zone, and in the meantime has formed a rising trend line of support.  A break of rising support could bring more selling into the picture, so I’m looking for a short sale opportunity in this one if it undercuts the $29.40 level.  As with all swing trades, my stop and target levels for this trade will be on the Hit List.

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:

CECO, ESI, BVN, CMG, CAB, HCP, EJ, SPRD, BORN, GCI, BKD, CHRW, TCO, RRD, ISLN, GGAL, MMYT, MBI, PHM, KBH, RYL

Bearish Watch:

CSTR, MA, CYH, MCK, NAV, V

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following a solid rally from key support zones since the beginning of the month, the market did a very nice job last week of holding onto those gains.  Some additional upside was seen, and even an attempt at some rest was made.

The indexes now are each near key levels, with some above them (NAZ and S&P 500) and others just beneath them (RUT and DJIA), so we have a bit of a mixed bag as the battle wages on.  Even if these zones can be cleared across the board, more overhead remains at higher levels which the bulls will have to contend with.  Nonetheless, in the bigger picture, we do have higher intermediate-term lows (relative to July), which bodes well for potential improvement into the remainder of the year.

As the end of the year approaches, we could also see performance anxiety start to kick in with money managers and fund managers.  Should the market continue to climb, more institutional money could feel left behind by a rally, and thus chase performance.  That could bring a solid rally into the picture, which is not a prediction, but simply something to keep in mind as a possibility in the coming weeks and months.

Quite a few stocks have seen big bounces since the first of the month, with minimal rest in recent days.  It would be ideal to see more basing to help not only alleviate overbought conditions which some stocks are exhibiting, but also to help more patterns mature for new plays going forward.  While the short-term direction has been up, I am mindful of the reversal-prone nature of this market in recent months and therefore reluctant to chase stocks for anything but the shortest of timeframes at this point.

I’m looking to maintain high levels of cash for now, focusing primarily on intraday trades with some occasional overnight positions (adding one candidate tonight) while waiting to see if the most recent rally can stick. We have options expiration this week, along with the indexes each right near key levels after nice rallies.  For that reason, I’m comfortable keeping my timeframe rather brief for new trades at this point, at least until the market can offer better short-term signals.  A rest here would come as no surprise, yet the buyers have maintained nice momentum recently and may show no hesitation to continue putting cash to work.

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:

SMN is the leveraged inverse ETF for the basic materials, and this ETF looks to be at a pivotal spot.  After a harsh decline (a rally in basic materials), this ETF has stabilized just beneath former support.  A push back up through that zone to reclaim it could invite more buyers into the picture, and an unfilled gap remains in place from September 1st.  I’ll be a buyer if the $32.60 level is cleared to the upside, looking for that gap to get filled on a bounce.  As with all swing trades, my stop and target levels will be on the Hit List.

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:

SMN, AEO, ESI, CMG, GILD, TKR, BORN, AUXL, AGCO, DO, SHLD, LL, DRI, TTM, MCP, CEG, GCI

Bearish Watch:

XEC, MMR, RIMM, LNCR, CSTR, MAR

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A strong start this morning took the indexes beyond key levels, but only temporarily.  The NAZ broke 2237 for a little while, and the S&P 500 cleared 1107, but by the closing bell, those levels prevailed yet again as resistance.  This is a great example of a market that is respecting the technicals, and it’s a reminder of the importance of the closing levels.

It looks like this market is still consolidating beneath those key zones, which is entirely alright.  So long as not too much ground is given back, more rest might actually benefit this market for the next time an attempt is made to fill the August 11th gaps.  Today’s bar on the charts left many stocks with the look of failures from their short-term consolidations, so the wait continues for more conviction on the upside in terms of a secondary advance.

Tonight I’m away from my desk and running behind for personal reasons, so this will be an abbreviated Broadcast.  I’ll of course still outline my plays for Friday, but the index focus will be narrower than usual and I’m coming to you in written format vs. the usual video format – thank you for understanding!  With the market showing some short-term indecision here, and with it being a Friday, I’m going to stick with day trades rather than adding overnight exposure while stocks are generally basing.

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

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

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

Trade Like A Bandit!

Jeff