Good evening StockBandits!

The holiday-shortened week began on a poor note this morning, but the buyers stepped in to offer some initial support.  That lifted the indexes well into positive territory, but only temporarily.  The market then drifted back around the flat line for much of the session, before weakening in the final hour to make the ultimate difference.  In the end, the indexes each shed more than 1% by the closing bell as stocks limped across the finish line.

Today’s poor performance leaves the indexes perilously close to recent support zones.  Although those zones have been penetrated on an intraday basis, the indexes have been able to consistently close above the early-May lows.  Another session like today and those levels would be in jeopardy, which in turn could leave this market headed once again for lower levels in search of some lasting support.

I continue to view the long side here with skepticism, primarily for the fact that this market has struggled so bad to bounce for more than a day at a time.  Whenever bounces are still getting sold consistently, it’s typically a signal that the long side should be played with extreme caution.  Tonight I’m carrying 3 overnight positions…2 on the short side, and 1 long which has had its stop tightened.  I’m eyeing shorts for tomorrow as day trades, and will remain cautious with new buys until this market is able to prove itself more capable of holding onto gains.  Right now, it’s still a pretty slippery slope.

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:

BGZ, SMN, SKF, VXX, FAZ, LCC, QCOR

Bearish Watch:

CEDC, CF, MON, F, MCO, MTB, BIIB, MFE, CECO, MHP, EL, SHLD, ATK, V, QCOM, ADSK, VECO, OC

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week really proved to be an interesting one, as prices moved all over the map.  We saw some big overnight gaps, some of which were filled quickly, and some which remain unfilled.  Intraday reversals were commonplace, just as they’ve been in recent weeks, and then we saw a weak finish to cap off what’s been a very poor month for the indexes as they lost about 8% across the board.

The encouraging thing right now is that some support is becoming evident on a closing basis, although the buyers still have a long way to go to prove that they’ll stand behind this market.  Continuation – and particularly upside continuation – has not been a common thing lately for this market.  For example, the S&P 500 went the entire month without having 2 consecutive advances.  That’s not the kind of market which can be fully embraced on the long side.  At the same time, the corrections have been swift and sizeable, which makes it tough to get aggressively short when the bulk of the easy money has likely been made on the short side.

All of these factors really reinforce 2 things to me.  The first is that timeframes need to be generally brief right now, at least until some follow through becomes a bit more common.  The second is that selectivity is crucial right now.  With so many sloppy charts to choose from, there really aren’t many high-quality plays to be found at the moment.  That narrows down my watch list considerably, and that’s quite alright in a messy environment like the one we’re in.

Heading into Tuesday as we start this 4-day trading week, there are a handful of trades I’m eyeing, as well as some charts I’m hoping to see some basing in.  I’ll outline them in tonight’s video.

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: WLL, WAT, CMI, VXX, V, MCO, MTB

Swing Trading Candidates:

MCO has been trending steadily lower for many weeks now, and more recently has put in some rest without a bounce attempt.  This stock closed right at support on Friday, so I’m on watch for a break in the coming days.  I’ll be going short this stock if it undercuts the $20.25 level, as there’s still room to correct further if short-term support gets broken.

Chart courtesy of StockFinder

MTB pulled back from its recent high to test an important level for this stock which has served as both resistance and support in recent months.  With the short-term trend down, I’m watching for a possible break of support at $78.50.  If that break occurs, I’ll be going short as prices head lower in search of buyers.

Chart courtesy of StockFinder

Bullish Watch:

VXX, VCI, UHS, REGN, APKT

Bearish Watch:

MCO, BIIB, ABX, DO, CNX, V, VAR, PCLN, COV, MA, AXE, MTB

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!

Traders who got positioned for another Thursday meltdown in yesterday’s closing weakness woke up to a big surprise this morning as the indexes gapped higher by about 2%.  Rather than seeing the early strength used for raising cash though, today we saw it get added to.  The initial response was a rather choppy trading range into mid-day, with no selling but limited additional upside.  But as the afternoon arrived, the buyers got back in gear and propelled the indexes to their best levels, taking stocks out at their highs when the closing bell finally rang.

Turnarounds have been no surprise in this market, as we’ve seen them occur regularly of late in both the daily and intraday charts.  Commitment has been a difficult thing in this environment, and it seems as though stocks can hardly stay moving the same direction for more than a few hours – particularly on the upside.  We’ve yet to see two consecutive days of strength in nearly a month (since April 29th).

In recent days, multiple tests of the downside have established some closing support zones, although the intraday action as viewed in HLC bars shows a lot of erratic moves.  Nonetheless, the indexes have been able to close consistently above the May 6th ‘flash crash’ lows, helping to create some support in that area.  That may be enough to prompt a good rally, and today was a good start, but the verdict isn’t in yet.  The first thing we’ll need to see is follow through.

Tomorrow is a Friday ahead of a major holiday (the market will be closed on Monday in observance of Memorial Day), so today’s light volume may be slightly attributable to that.  We could see quieter action tomorrow as well, as many are starting vacations and schools are getting out.  As a result, I’m looking to take it pretty easy, but there are a few plays on my radar which I’ll discuss in tonight’s video.

As a reminder, the next Bandit Broadcast will be posted here on Monday night since the next trading session will be Tuesday.

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: GLD, ABX, GG, CSTR, CAB, SHLD, DO, V

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CSTR, NTRI, VCI, ORLY, HOT, NAV, SPRD, CAB

Bearish Watch:

DO, ABX, V

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 gap up this morning saw some initial follow through as the NAZ led the way higher by partially filling the gap from last Thursday.  That only lasted about an hour before some modest profit-taking pulled the indexes from their highs.  As the day progressed, and particularly in the afternoon, the downside continued, taking each of the indexes into negative territory.  By the closing bell, more losses were posted as the market finished only slightly above its worst levels of the session.

These intraday reversals have become quite common of late, and there remains a very high level of indecision in this market.  Today’s turnaround in the NAZ was roughly 3% from the high to the low, which is enough to prompt motion sickness even in a rather volatile environment like this.  Those kinds of moves are making it very tough to stick with positions for timeframes longer than a few hours, as all conditions are subject to change abruptly right now.

Lately we’ve seen prices repeatedly test support zones, breaking them a couple of times only to recover, and hint that some support is being found in this area.  However, the weak finishes we continue to see are eroding what little confidence the buyers seem to have left.  Today’s closing levels were the lowest prices we’ve seen the indexes finish at since this correction began, so although the intraday lows are still beneath us, this is still very much a time and place for elevated caution – at least until this market can start to finish better and suggest there’s some accumulation taking place.

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: FDX, RHI, SOHU, MON, MCO, EL, ACL, SHLD

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

UHS, SPRD

Bearish Watch:

CF, MON, MCO, MFE, DO, CECO, CRS, EGO, X, EL, ACL, SHLD, V, GLD, QCOM

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!

Monday’s weak finish paved the way for another hefty gap to the downside this morning, as the indexes all opened roughly 2% lower.  The NAZ gapped 50 points, the DJIA gapped about 200 points, and the S&P 500 gapped some 20 points on the open, taking each them to new correction lows as they began the day.

However, the worst levels of the day were seen in the opening few minutes of the session, and from there stocks staged a gradual recovery which intensified in the final 2 hours.  By the end of the day, the indexes had erased their losses to finish essentially flat on the day.

Today’s closing levels helped to establish the presence of support, particularly on a closing basis in the major averages, so it will be interesting to see if that leads to a sustained bounce in the days ahead.  Friday’s reversal off the lows held some promise for an oversold shake-out, and while the first try didn’t stick, we sure can’t yet count out this occasion.

The market has come down considerably over the past 2 weeks, and at some point a bounce is going to arrive.  And while I don’t have a crystal ball, I do know that right now I don’t want to be short given the stretched nature of the proverbial rubber band.  There are several longs I’m considering for plays tomorrow, and other than the names highlighted in tonight’s video, I’ll be focused on market-tracking ETF’s.

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: VCI, SHLD, AMSC, HOT, UHS

Swing Trading Candidates:

UHS pulled back gradually the past few sessions after a nice breakout, and this sets up a well-defined bull pennant pattern.  I’ve been watching this pattern develop for the past week or so, and it now appears finally ready to make a move.  I’ll be a buyer if this one can clear the upper trend line at the $42.35 level.

Chart courtesy of StockFinder

Bullish Watch:

NTRI, DCTH, VCI, SFI, SHLD, PHYS, ORLY, LCC, UHS, HOT, AZO, SNDK, SPRD, AMSC

Bearish Watch:

V, ATHN

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