Good evening StockBandits!

A few days of selling pressure after Monday’s downside reversal are starting to set up for a bounce, but it isn’t here yet.  Stocks suffered once again today as they reached new lows on the week with increasing volume, and the dip buyers stayed away yet again.  Volatility is back on the rise, and the selling thus far this week has been relentless, but it’s not all doom and gloom.

The June lows are still a considerable distance away, which means that the potential higher low I’ve been looking for on this pullback may still play out.  Add to that the fact that the pullback has been rather steep, and the odds for an upside reversal begin to increase.  We’ve seen a number of steep moves in the past couple of months, all of which have led to short-term reversals.

And speaking of short-term, that’s the timeframe I’m referring to here.  The establishment of a higher high has already occurred, and the next need for the bulls is a higher low.  That may not be a single-day event, so it’s important here to continue to respect this market’s ability to decline.  All I’m watching for is a potential multi-day bounce, and beyond that, we’ll have to evaluate if and how it unfolds.

Nonetheless, it’s been a good week to be short and then in cash.  As we head into Friday, I’m looking at a few potential day trades, but not looking to commit any capital over the weekend.

I’ll see you back here with the next Bandit Broadcast on Sunday evening, enjoy your weekend!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CRUS, XCO, MED, BP, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

APKT, GOLD, AZO, ARBA, ANV, OVTI, CRUS, AAPL, XCO

Bearish Watch:

MED, BIG, BP, APC, CF, MOS, MON, GPN

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!

For an FOMC day, it sure wasn’t very lively out there.  Stocks were sluggish all day as they tested the waters both on the downside and upside, only to finish little-changed from last night’s levels.  Momentum was fleeting, and it was truly a flipper’s market today with the frequent changes of direction we saw.

And while today’s action itself wasn’t impressive, it may have some implications for prices in the days ahead.  Note that I said ‘it may have.’  What’s of interest is that we’ve pulled back from Monday’s highs, and today prices stabilized.  We didn’t finish strong, but we did finish off the lows of the day.  That might point to some short-term pullback fatigue, so tomorrow could be telling in that regard.  A turn higher from here, or even some additional stabilization, would add credibility to the possibility of a higher low resulting from this dip.  The big advance from the June lows sets up that scenario, but the bulls are going to have to go out and make it happen.

For the time being, we’re still inside the trading ranges on the NAZ, S&P 500, and RUT, so for me that means I’m waiting for more technical proof of a higher low being established before I will commit much capital for more than just quick trades.  With that said, there are several names I’m eyeing for trades tomorrow, and I’ll outline them in detail in tonight’s video.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CTRP, CF, VECO, CBOE, OVTI, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, GOLD, AZO, RBCN, ANV, FFIV, MENT, CTRP, ARUN, YGE, CF, OVTI, ARMH, MHP, EGO, CRUS, CBOE, VECO

Bearish Watch:

BP, AMG, APC, F, GPN

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!

It was a pretty uneventful morning today with each of the major averages marking their highs early in the session, only to settle into trading ranges for the remainder of the morning.  However, the morning lows were broken with the arrival of the afternoon, and stocks declined steadily into the closing bell.

Recent resistance zones which had turned into short-term support levels were undercut and never reclaimed, continuing the weakness from yesterday’s downside reversal.  The indexes are now back inside their trading ranges once again, but the potential for a higher low to result from this pullback still remains.

Trading range price action is choppy and indecisive for the most part, so while we’re back inside the ranges, it’s best to stay selective and wait for high-quality patterns to develop.  My game plan heading into tomorrow is simple and straightforward with just a few potential plays.  I want to respect the frequent reversals which tend to be so common within trading ranges (now that we’re back inside one), so I won’t be building any big positions.  Add to the fact that tomorrow is a Fed day (2:15pm ET announcement), and there’s plenty of reason for caution here.

I’ll cover my trade ideas and of course the market action in tonight’s video.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MED, AMG, ADSK, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RBCN, VXX

Bearish Watch:

MED, CAT, HD, TEX, AMG, FTI, MMM, ADSK, BP, APC, CF, MON, LEN, F, WL

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!

Stocks jumped out of the gate this morning to kick off a new week of trading with a sizeable gap.  The early strength wasn’t able to hold up though, and stocks tumbled into negative territory before it was all said and done.  After the bounce we’ve seen from the June lows, to see an upside gap get sold like this isn’t too surprising.  It’s also another example of why Monday morning optimism should be greeted with some skepticism.

Although the day’s gains were erased, it was interesting to see former resistance zones serve as support – for the time being anyway.  The S&P 500 respected 1105 on the pullback, and the NAZ was able to hold 2282.  We saw the RUT fail once again to clear 670 on a closing basis, so our levels remain valid until further notice.

Tomorrow is the start of a 2-day FOMC meeting on interest rates, with the announcement coming on Wednesday at 2:15pm ET.  Although no news should be anticipated tomorrow, the mere reminder of a 2-day meeting leaves traders less willing to commit, which often creates an environment best for quick-flip trades.  Keep that in mind as we head into Tuesday’s action, as I’m only eyeing day trades after a thorough look through tonight’s charts.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: VXX, F, MED, CAT, LEN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DPS, FAZ, VXX, TWM

Bearish Watch:

MED, JOE, HOG, RL, JLL, FLS, HD, BP, WDC, UPS, ALB, EQR, CF, MON, FO, SHLD, MAR, F

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!

And Happy Father’s Day!  I am a father to 1 already and have a 2nd on the way late this year – having a lot of fun and hope your families are well!

On to the market… We saw an important short-term breakout last week as the major indexes were able to push through some resistance zones (with the exception of the RUT at 670) and then hold them for the final few sessions of the week.  That’s a solid performance on the part of the buyers, particularly after their consistent presence for the past few weeks coming up from the June lows.  We’ve seen rallies of 6-8% across the board, which is no small feat given the persistent weakness which had been squashing each rally.

That does not mean the coast is clear yet, because the creation of higher highs will now need to be met with the creation of a higher low in order to truly shift the trend.  That may or may not happen this week, but the next dip will be very telling in terms of the validity of this bounce.  If the buyers are quick to step in and offer support, we’ll be able to buy with some greater confidence of a secondary advance.  If instead the weakness invites more selling pressure, we’ll know to remain cautious.

As for the week ahead, I think we either see the market accelerate higher out of the small flag-like patterns which have emerged on the daily charts of the indexes, or we see a pullback kick in to test the resolve of the bulls.  I’ll be keeping a close eye on last week’s highs as key areas to signal another advance, as well as the resistance zones which have turned into support for a possible move lower.

Heading into tomorrow, there are a number of plays I’m eyeing, but only for quick trades since we’re currently in a short-term trading range.  I’ll outline them in the video, as usual, along with my rationale and levels for each trade.

Enjoy your Father’s Day, and go get ’em on Monday!

Leave any comments or questions down below and I’ll be happy to address them!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MENT, IT, NVLS, PXD, RL, AMG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NFLX, DECK, DPS, LVS, ARBA, IT, GIL, RBCN, CAL, QCOR, MENT, FFIV, RKT, TEN, TK, NVLS, CROX, ARUN, NYX, PXD, CMI

Bearish Watch:

HOG, RL, JLL, CSTR, AMG, ALB, ESI, CNW

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