Good evening StockBandits!

Morning weakness led to a test of the May lows in each of the major averages as key levels recently highlighted here were challenged.  The buyers stepped in to offer support, at least temporarily, creating an upside reversal with some afternoon strength which lifted the market well off its worst levels of the day.  By the closing bell, the DJIA had chalked up a triple-digit advance, although the NAZ remained in the red.

It’s too early at this point to declare a turning point for this market, because one day held at support does not a bull market make.  What we do know is that the market had declined considerably from Thursday’s high of last week, and it was likely due for a bounce.  With key short-term support levels having been approached, it was a logical spot for bargain-hunters as well as shorts who needed to cover to step in.  Whether we see any lasting follow through from here remains to be seen, but for the time being, support is being respected.

With this market so capable of making a big move in either direction from here, and with so few high-quality chart patterns available tonight, my game plan for Wednesday is to keep short timeframes for new trades.  This is definitely a market for the nimble, so tight stops and quick profits are the name of the game for those venturing into the fray.  Maintain high levels of cash here, and wait to see if this market is able to build on the bounce which started this afternoon.  If a lasting rally is to take place, we’ll see a pullback after the initial bounce which will offer much better entries in terms of defined risk.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: TD, SMH, CSX, OII, QCOR, UNG, AMR, DECK, SWN, XCO, MA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

QCOR, UNG, NGD, XCO, AMR, ALK, HSY, CXO, DECK, SWN, CRK

Bearish Watch:

GPN, DPZ, BIG, DRQ, GMCR, MA

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 flirted with positive territory a couple of times this morning, gapping slightly higher to begin the day and soon after bouncing to reach new highs on the session, only to reverse hard and chalk up another significant decline.  For the NAZ, it was a 2% loss, while the S&P 500 and DJIA each gave up slightly more than 1%.  Nonetheless, support was taken out in each index, reminding all that we’re still in a corrective phase.

I’ve mentioned a number of times here lately that upside follow through has been virtually nonexistent, as well as upside volume.  The inability of this market to put together even a decent bounce that lasts longer than a day has been the biggest warning flag of late, and it has kept me holding some short-sided exposure.  Hopefully even if you don’t trade the short side, you’ve long since raised cash and avoided the pain which so many are feeling.

At some point, the tide will shift again and stocks will rally.  Until that happens, the market remains in corrective mode and extreme caution should be exercised when considering trades on the long side.  We’ve seen a significant 2-day decline, and while more weakness could arrive tomorrow, it’s an equally important time to stay careful with new short sales.  Relief bounces have been sudden when they have arrived in recent weeks, so timing remains important even when trading in the direction of the prevailing downtrend.

For tomorrow, there sure aren’t many setups out there worth noting after a big rally last Thursday and then a steep selloff in the 2 sessions since.  I’m eyeing some trades, but keeping a pretty focused list until more quality bases emerge in the charts.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: NGD, PBR, GPN, GMCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NGD, EGO, THOR

Bearish Watch:

OII, MON, DWA, MAC, OIH, PBR, LPS, ATW, SLB, DO, MHP, FTI, SII, TRLG, NE, RIG, BIG, GPN, DPZ, NOV, DRQ, HES, GMCR, APC

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!

A highly-anticipated jobs report on Friday morning failed to impress, and overnight jitters from Europe were further exaggerated ahead of the opening bell.  The opening gap left the indexes 2% lower, and a feeble attempt to fill the gap ultimately failed after the first hour of the session.  From there, stocks continued their decline in a steady fashion, trending lower throughout the day as the major averages posted losses in excess of 3%.

Friday’s weakness brought the lowest closes for the DJIA and S&P 500 since this correction began, although intraday lows from May weren’t penetrated. The NAZ was the exception, holding above the lowest close in May by about 1%.  Each of the major averages saw increased volume on the decline, although volume remained below average.

Upside follow through continues to be the thing this market is lacking, and even though some support zones have become evident on the daily charts, there’s certainly no guarantee that they’ll hold.  Some mixed signals are coming from the indexes, but the common thread is that they’re each struggling to show strength on anything but an occasional basis.  Each bounce is still getting sold, which is a reminder that added caution is still best (just as it has been for the past several weeks).

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SNDK, AZO, MAC, FTI, ATW, BIG, MHP

Swing Trading Candidates:

BIG turned lower on Friday and now is resting on key support after several weeks of basing action.  This one has ample room to move lower if it breaks support, so I’m watching for a breakdown at $33.90 to initiate a short sale.

Chart courtesy of StockFinder

MHP isn’t far from support within this descending triangle pattern, so I’m on the lookout for a breakdown any day now.  My trigger for a short entry will be the $26.90 level.

Chart courtesy of StockFinder

Bullish Watch:

SNDK, AZO, QCOR, ANV, ERY

Bearish Watch:

DRI, OII, ADM, CF, MON, DWA, CECO, SHLD, MTB, ITRI, PII, MAC, OIH, PBR, LPS, ATW, SLB, CCJ, DO, MHP, HAR, MEE, F, LLL, FTI, SII, TRLG, PWRD, TDW, NE, CEDC, RIG, BIG, ESI

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!

A positive start this morning sent the indexes higher, although a mid-day dip erased those early gains.  Some afternoon strength did return, taking the indexes back into positive territory, but the senior indexes lagged the NAZ with only modest gains.  In the end, the market finished green, posting the first consecutive advance in several weeks.

Although it’s encouraging to see recent support hold, as well as back-to-back advances, the buyers still are acting hesitant to assert themselves.  That’s evident not only in the magnitude of the rallies, but in the brief nature of them, and particularly in the lack of upside volume.  That points to limited participation in the buying, which suggests there isn’t a lot of fuel propelling the rise.  Nonetheless, support is still holding for now, so it’s an environment which calls for abbreviated timeframes due to the lack of follow through we’re seeing in either direction.

As we head into the final session of the week, we have a big jobs report tomorrow which could easily set the tone for the day.  Therefore, my focus will be on day trades while maintaining my existing swing positions (see the Hit List post for details).

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: NAV, QCOR, OII, PEI, ADM, SNDK, IT, ORLY, DRI, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

UHS, NR, SNDK, AZO, NAV, QCOR, DTV, VMW, OVTI, IT, PAR, ORLY, UNG, QSFT, DGIT

Bearish Watch:

DRI, OII, ABX, PHYS, PEI, ADM, CF, MON, DWA, MOS, MCO, CECO, X, FO, SHLD, MTB, BEN, 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!

The indexes had approached support with Tuesday’s selloff, but the buyers returned today to defend those zones, taking the indexes steadily higher throughout the session to post solid gains of more than 2% across the board.  The NAZ led the way by making a multi-day high, while the S&P 500 and DJIA each approached the upper end of their 8-day trading ranges.

Two things have been severely lacking in this market lately – upside follow through, and heavy upside volume.  While we will need to wait a couple of days to see if follow through arrives, today’s upside volume was evident once again with very underwhelming levels.  If volume is the fuel that drives prices higher, then this market is in need of a fill-up.  Nonetheless, support zones have been defended for now, so let’s see if the buyers can make a rare repeat appearance tomorrow.

In looking through the charts this evening, there still are a very limited number of setups out there to choose from.  We’ve seen back-and-forth directional movement in recent days within this range, so the lack of follow through and the light volume is keeping things tricky for now.  My plays for tomorrow are day trade candidates, so I’ll stick with my existing swing positions for now before looking to add any more overnight exposure.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday. Thank you for your patience with this evening’s late report as I’ve been tending to some other matters.

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

Bullish Watch:

CSTR, ORLY, LCC, UHS, SNDK, PII, PAR, DTV, AGP, ARBA, DLB, VMW, OVTI, IT, NTAP

Bearish Watch:

ABX, MON, MCO, EL, SHLD, ATK, V

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

Trade Like A Bandit!

Jeff