Good evening StockBandits!

A takeover attempt on POT gave the market some spark today as stocks traded higher right out of the gate.  The opening gap found additional buyers into early afternoon, but then the market drifted back into the closing bell.  All in all, it was a solid session for the bulls after a 5-day pullback.

Today’s action filled the gaps left last Thursday morning, and that’s technically healthy to see.  The weak finish does leave something to be desired though, and it gives today’s action the look of merely a relief bounce after last week’s break of the uptrend lines.  The wild card is that we’re now entering late-August, which is a time notorious for light volume (like we’ve been seeing) and listless trading.

That light volume is also being seen in the charts of many individual stocks, some of which I’ll outline in tonight’s video.  For Wednesday, I’m planning on going where the action is, so I have a narrow list of names on watch and most of them are momentum stocks.

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: AUXL, WPRT, IOC, CAGC, MMYT, MA, OCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

BAX, IOC, PCLN, CAGC, ADM, BID, MA, CROX, AUXL, STR, WPRT, MMYT

Bearish Watch:

HPQ, WDC, BBY, CSC, OCR, KGC, RBCN, CME, STI, SLAB, BAC, MFE, NETL, ETP

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The market bounced back slightly today from a soft open as traders tested the waters on the buy side.  However, it was a timid effort as the indexes finished near flat on the day, unable to gather any lasting upside momentum.  It truly felt like summer today as all the action came early in the session, with indecisive, range-bound action for the final few hours of the session.

On the daily charts, the indexes have been able to stabilize in the past couple of sessions, but no relief bounce has yet arrived.  If that continues to be the case, the daily charts will largely take on the appearance of bear flag or pennant patterns, with last week’s hard selloff being followed merely by consolidation rather than some kind of bounce.

The longer the market spends near current levels, the more it will naturally be working off the oversold conditions without any advance.  That could open the door up for another wave of selling, so it’s still a time to exercise caution out there.

There are very few stocks out there tonight with well-defined patterns, as most of them just need a little more time consolidating to get ready.  That leaves me with a pretty limited list for Tuesday, which is alright, especially if we see another light-volume session like we did today.  On such days, doing less is best.

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: POT, CROX, IOC, OCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

POT, CROX, IT, BAX, HRC, IOC, ATK, PPO, AUXL, STR

Bearish Watch:

JEC, THOR, TIE, GS, F, ROST, OCR, TRLG

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Harsh breakdowns last week put an end to the short-term uptrends which had been building since the July 1st low in the major averages.  The reversal-prone nature of this market in 2010 was revisited, with an abrupt shift in momentum and a sudden absence of the dip-buyers who had been so persistent in the past several weeks.

While the shake-up certainly left some traders in bad shape (particularly those who failed to employ or abide by stop losses), it may prove to be beneficial for the longer-term health of this market.  The correction since the April highs has been a harsh one, so we can’t expect to see a steady climb right back up.  Higher lows need to be established on an intermediate-term basis, and it could be that the pullback which just began is on the way to creating those.  The July lows will need to hold if that’s going to prove true, so the coming weeks will be important for the bulls.

In the short term, many stocks which had been building bullish bases and patterns saw a big change of character with those patterns being negated.  As a result, my watch lists saw a big change in complexion last week.  Also, stocks which have broken down are for the most part not in position yet to consider for shorting.  That translates into the need for patience while we let new patterns build, rather than trying to chase moves.  I do expect to see plenty more trades arriving in the days to come, as a market on the move will continue to offer up opportunity.

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: RINO, PXP, MMM, ROST, BID, IT, PLCE, GS, GOLD

Swing Trading Candidates:

GOLD has a series of lower highs and lower lows in recent weeks, as the stock has been dominated by a downtrend line since peaking in late June.  A key support zone (former resistance) has now been met, which if broken, could start another leg lower for this stock.  I’ll be watching the $85 level for a break to trigger a short sale, as this one has some room beneath that level before the next support areas are reached.  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:

RINO, BAX, ATK, SLW, TRW, BID, IT, PPO, PXP, MYGN

Bearish Watch:

WDC, NEM, THOR, BBY, TIE, GS, WCC, FO, FSLR, GOLD, TMO, JEC, MMM, ROST, PLCE

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The downside gap which was looking so likely last night proved to be a short-term exhaustion gap, offering some intraday potential on the long side.  The indexes set their lows in the opening minutes, and although they didn’t recover the entire gap, they were able to erase a large amount of it.

In the days and weeks to come, I’ll be watching to see if this decline is able to stop shy of the July lows.  That would be very technically healthy to see an intermediate-term higher low established (relative to the July low), and would set the stage for a rally into year end.  It’s far too early to place any expectation whatsoever though, I’m simply pointing this out as a possibility.  We’ve broken the string of short-term higher lows, but that doesn’t necessarily mean the indexes are headed right for new correction lows.  It’s possible, but I’m looking to keep an open mind as always.

With back-to-back overnight gaps in the past two sessions, and with the market having made a big move off Monday’s highs, it could be that we see a consolidation day tomorrow.  The easy money has been made on this initial move lower, so I’ll be eyeing some potential longs on Friday.

Keep in mind, it’s a summertime Friday, and we’ve seen a sizeable move already this week.  If the afternoon arrives and not much is happening, it’ll be our cue to do very little.

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: MA, MMYT, GDX, BID, ADM, TRW

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

GDX, PCLN, AGU, POT, MMYT, BAX, MDCO, MOS, CF, CMS, SLW, TRW, CAGC, ADM, BID

Bearish Watch:

APOL, ESI, TMO

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last night I said “Two big trend lines are converging quickly, and I am expecting to see a solid break of one of them take place in the next couple of days, if not tomorrow.”

Well, today that break arrived in the form of a large downside gap and some continuation lower as the day progressed.  The indexes attempted to stabilize into the early afternoon, but some additional selling pressure came in to take the market out near its lows by the closing bell.

After hours, the futures are trading lower once again on the heels of bad news out of CSCO, indicating we could see another downside gap tomorrow morning.

Ideally, the break would have happened naturally (no gaps) and given an opportunity to hop on board on the short side, but about 2/3 of today’s move happened overnight.  Regardless, it is a technical sell signal for the overall market, reminding us to raise cash and reduce long-sided risk.

It’s tough to chase the short side here as well, so my plan for tomorrow is to primarily sit tight and focus on just a few names.  Today’s selloff damaged many bullish charts which had been building, so there’s not much available for trades tomorrow as a result.  I’d like to see the dust settle once this initial selloff finds some stability, and reassess at that time.  There are a few trades I’m eyeing for tomorrow, but I’ll keep the ETF’s in mind alongside them for possible trade candidates if the market continues to move.

Be sure to catch my post from mid-day today regarding patience and waiting (scroll down), as there are some good reminders for the current environment.

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: GOOG, GS, RDC, ARUN, AGO, CF, HAR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

BAX, AGO, NXTM, CF

Bearish Watch:

MHS, NEM, TIF, RTN, GS, WCC, WHR, CSC, GOOG, LLL, APOL, FO, ESI, FSLR, NUE, BBT, HAR, GOLD

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff