Good evening StockBandits!

Overbought conditions following the rally which began last week opened the door for some profit-taking, and that’s what we saw today.  The downside was rather limited though, and the volume was extremely light, and those are both very healthy to see.

It’s unclear whether summertime was responsible for the light volume, or merely the uncertainty of how far this pullback may carry, but there sure wasn’t much going on out there.  Earnings season is still very much in full swing, and that’s also playing a role in how active traders are willing to be at the moment.  It seems there is no shortage of reasons for traders to take it easy, so while we wait for more technical clues to emerge, that’s a good reminder for us to tread lightly.

There are many setups in the works which just need a little more time, as well as some good patterns I’m looking at for trades on Thursday.

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: CRM, FFIV, ISLN, BUCY, CCL, RCL, HOT, CSTR, SYK, NFLX, LNCR, MOS

Swing Trading Candidates:

MOS bottomed out at the first of the month, and since then has been under steady accumulation.  A push through resistance will trigger a buy for me, as this one has potential to accelerate higher out of this pattern.  As with all swing trades, my stop and target levels will be on the Hit List post soon to follow.

Chart courtesy of StockFinder

Bullish Watch:

EMR, HOT, CSTR, IOC, ITT, SOLF, CRM, FFIV, VMED, ISLN, MOS, BUCY, CCL, RCL

Bearish Watch:

PRU, CLB, SYK, CERN, NFLX, WDC, LNCR, COV, HSY

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 took a much-needed rest today as the indexes finished little changed and with mixed results.  Momentum was absent, and that’s not such a bad thing for the overall health of the current rally.  A morning gap up offered an opportunity for profit-taking, and as the indexes turned red from the gap fill, the damage was extremely limited.  Stocks stabilized for the remainder of the day, making for a range-bound afternoon.

More rest would be a very encouraging sign, although that may not happen.  Last week was the first occasion in a while where the dip was bought, avoiding an all-out reversal, and that points to some confidence among the bulls.  We’ve seen short-term higher highs and higher lows established, and it could be that the buyers keep their foot on the pedal a little longer.  This market hasn’t exactly made it easy to get on board the moves once they begin.  Nonetheless, it is a very tricky spot to be initiating new buys for anything but the shortest of timeframes, as a pullback could still come at any time.

We’re right in the thick of earnings season, and combined with the current state of this overbought market, it’s certainly a time to stay on our toes.  I’m eyeing several trades for tomorrow, but looking to stick with my existing swing trades rather than looking to add any more overnight exposure just yet.  I suspect that will change soon.

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: RIG, DF, SMN, WDC, RIMM, PRU

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CEDC, RIG, BVF, STEC, DF, ATW, SMN

Bearish Watch:

RIMM, MMR, PRU, CLB, SLW, SYK, MHS, FAST, GDX, NEM, CERN, NFLX, WDC

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!

Following the creation of higher highs on Friday, the buyers picked up where they left off prior to the weekend, and stocks moved solidly higher again today as a result.  Volume wasn’t impressive, and actually sagged slightly, but prices advanced as the major indexes headed toward their June highs.

All of this is no doubt bullish for the market.  We’ve not only seen a dip get bought, we’ve seen upside follow through to confirm that.  The issue at this point, however, is that the current advance has left many stocks rather stretched in the near term.  They may be able to run higher before resting, but a pause would be extremely healthy to see at this point.  In addition, it’s difficult to find prudent exits for new entries at current levels, as consolidations are well below for many stocks.

Nonetheless, there are some setups out there that I’m focused on as we head into Tuesday.  They’re for day trades, as earnings season is limiting the names I’m willing to hold overnight at this point.  That will change soon as more reports come forth, so for now I’ll stick with my existing overnights and look to make some quick hits tomorrow.

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: PXD, DLB, GS, CLB, MHS, NFLX

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PXD, BIDU, CEDC, SOL, RINO, WLP, CLGX, WHR, NBL, LCAPA, STEC, MCO, DLB, CCJ, OII, GS

Bearish Watch:

MON, POT, PRU, CLB, SLW, SYK, MHS, GDX, GG, NEM, GLD, CERN, NFLX

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 rally we saw on Thursday and Friday last week consummated the higher-low theory I’ve recently outlined here, and that’s a good thing…not because I want to be right or because I want higher prices, but because trend shifts always bring some great opportunities in the market.

A lot remains to be seen this time around, but there are reasons for the bulls to be encouraged.  We’ve seen higher lows and higher highs established in recent weeks, and that puts some heat on the bears.  Small caps have cleared their descending channel, and many stocks are shaping up for higher prices.  Follow through must be seen, and that doesn’t have to be immediate, but it should happen in the next couple of weeks.  Momentum can build quickly from here if this rally is embraced, and the movement beyond key levels last week certainly turned many traders more bullish.  A push through the June highs, and this market could be off to the races.

In looking through the charts this weekend, there are no doubt a ton of stocks which are acting well at the moment.  The challenge with adding long exposure here is twofold.  First, chasing stocks well beyond clean technical buy points is a recipe for pain, and I’d rather be paid.  Second, we’re right in the thick of earnings season, making it very difficult to hold overnights safely.  In the video tonight, I’ll outline several plays which I’d normally take for swings, but with earnings in just a few days, I’m opting for shorter timeframes.  There are some swings I’m eyeing as well, and I would suspect we see plenty more in the days to come.

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: HAL, STEC, OII, BVF, BIDU, MCO, BG, BEN, GDX, NEM

Swing Trading Candidates:

GDX created a bit of a double top during June after failing to stay clear of the May high, and since then it has turned lower.  This Gold Miners ETF now looks to be in a downtrend, so this bounce offers a potential play on the short side if it begins to fail.  A move down through the trend line at $48.80 will trigger a short sale for me.  My stop and target levels will be on the Hit List.

Chart courtesy of StockFinder

NEM created a broadening top just a few weeks ago with incremental higher highs being followed by dips to lower lows.  This stock recently sold off hard and has bounced back on weak volume, creating a rising trend line in the process.  A move down through the trend line at $58.70 will trigger a short sale for me as this one heads lower in search of support.  My stop and target levels for this swing trade will be on the Hit List.

Chart courtesy of StockFinder

Bullish Watch:

STP, BVF, SHLD, PXD, AEL, BIDU, YGE, RIMM, VAR, CEDC, RINO, VRX, TSLA, HAL, AKAM, CPNO, XLNX, CTSH, STEC, SOLF, ALTR, AGU, MCO, BG, HOT, CCJ, BEN, OII, HXL, WFT

Bearish Watch:

RIG, AGP, WMS, FAST, GDX, GG, ABX, NEM, GLD

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!

In the market, no two days are alike.  And that was particularly true of yesterday and today, as we saw similar starts, but very different finishes.  Wednesday’s opening gap to the upside was quickly sold, and that sparked a sharp downside reversal which left the indexes well in the red.  Today however, we saw a positive start which pulled more cash off the sidelines and into the market as traders accumulated stocks to finish just a short distance from the best levels of the day.

The market has been fickle of late, no doubt keeping traders on their toes after some pretty smooth moves in recent weeks.  The past week has been very different though, as follow through has been incredibly tough to come by.  And as we head into a summertime Friday tomorrow, that may ring true yet again.

Right now we’re at an interesting spot.  There’s potential that the dip which began last week and ended with Tuesday’s low turns into a higher low on the daily charts (as compared to the July 1st low).  That would be technically significant, no doubt about it.  What needs to happen is a push through last week’s highs, and as of yet, we haven’t seen that.

If the indexes can push through, close above, and hold those levels, then we could see a summer rally kick in.  That could be an impressive one too, with the combination of short-covering (as bears worry that the lows have been put in) and accumulation (as bulls rush in from the sidelines after a rough year) driving stocks higher.  That’s just one scenario of many which could play out, and I’m eager to see what happens.

For now, I’m off to celebrate my 35th and get away from the screens for a while.  Make it a great evening, and go get ’em on Friday!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: DLB, BEN, OII, CMI, HOT, MYGN, YGE, RIMM, BVF, CCJ

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DRQ, YGE, RIMM, CEDC, SOL, WLP, BVF, ARNA, TSLA, AAP, STP, AKAM, CPNO, ADTN, EXPR, PCLN, QLIK, XLNX, RBCN, ALTR, AGU, SLXP, SDRL, HOT, CCJ, BEN

Bearish Watch:

RIG, MYGN, ANV

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