Good evening StockBandits!

Tuesday’s weakness carried over into today’s action, with the NAZ staying red all day while the S&P 500 and DJIA were only able to go briefly positive.  In the end, more declines were posted as traders again stayed away from the buy side following technical breakdowns from the recent trading ranges.

Although the market has broken down on a technical basis and appears to be in the early stages of a correction, in the very short term this is a difficult spot to be initiating new short sales.  We’ve seen a solid 2-day decline which has damaged many individual charts, and it may very well be that some kind of relief bounce is in order soon.  That isn’t at all to say that prices can’t continue lower first, but simply that I’d prefer to see some attempt at a bounce before looking to add short exposure.  If this market is topping, it is likely to be a process with some failed bounce attempts along the way, so let’s see if the buyers attempt to step in soon.

For Thursday, I’m eyeing a few day trade candidates, but there really isn’t an abundance of good charts to choose from tonight.  A little rest or even a minor bounce would greatly aid the construction of individual charts, allowing some short-term bases and patterns to further mature and bring along with them many more candidates for trades.  At the moment, the short side appears to be higher risk after this selloff, so I’m going to instead focus on a few bullish setups for quick trades on Thursday.

I will be traveling tomorrow afternoon and most likely will not be able to put out a full newsletter on Thursday evening.  If it turns out that I am able to, then I’ll be sure you are notified via Twitter and email. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday.

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 on Thursday. 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, FCH, NFLX, IAG, MBI, GG, JDSU, SKF, VXX, FAZ, ISLN, PNK, CLP, ABX, DNDN

Bearish Watch:

PFCB, GMCR, MTG, CSIQ, HNT, CAM, BP, APC, RIG, CAKE, JPM, COG, DO

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major averages started off this morning on the wrong foot, slipping early to fall back toward the lower end of their 3-week trading ranges, only to undercut key short-term support zones by mid-day.  Unable to recover, they simply lingered near their lows for the rest of the session, finishing not far from their worst levels.  The point losses were the biggest seen since February 4th, one day before the most recent upside run began.

The most important event of the day was the fact that each of the indexes closed beneath support zones.  That translates into a downside resolution from the high-level trading ranges, and along with the added recent volatility, suggests that a change of character may be underway.  Turning points tend to more often be a process rather than an event, and the past few weeks have seen no follow through in either direction.  There have been solid rallies followed by downside reversals, and vice-versa – all of which point to some increasing indecision of late.  I’ve noted my reasons for caution here for the past week, and today’s move validates them.

I’ve also mentioned here that if the market is in the process of a turnaround, there will be plenty of time to get on board for trading the short side – that the initial move doesn’t have to be caught.  I still feel that way, and now I’ll be watching for some failing rallies to short sell.  In the coming days, I suspect we’ll see some bounce attempts which aren’t able to reclaim key levels, or which are accompanied by poor upside volume, and those will be clues that those stocks are the ones to focus short-selling efforts on.

I will say I’m very glad to be in cash for the past several days, not only with the lack of follow through but with today’s breakdown.  If you haven’t raised cash already, this is a good time to consider doing so.  It isn’t too late, because if the market corrects further from here, significant profits can be given back with ease.

By the way, I’m doing some travel the next couple of days but will return to the video format later this week. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.

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:

I’m eyeing the following setups for multi-day plays if they can cross the levels specified here.  The Hit List post outlines my trade parameters for these plays, including entries, stops, and targets.

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Day Trading Candidates:

These are the trades I’m eyeing for potential plays on Tuesday. 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:

LLEN, BID, EQR, MBI, MHR, JDSU, SKF, VXX, ISLN, ADS, FAZ, SIRO, PPS, CPO

Bearish Watch:

TIE, SOHU, PFCB, CAKE, CMG, CSIQ, AGU, PWRD, MTG, GDP, UIS, MTW, PRU, CEPH, F, AIG, FAF, MEE, BG, MOS, MON, JPM, BAC, DAL, AMR

The Hit List post will follow shortly with my trade levels for the swing trade candidates I’m looking to trade.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

With the indexes having sold off to reach short-term support zones within the recent trading ranges last Friday, the early portion of this week was set to be a potentially important time.  Further weakness could easily have brought about a breakdown from the trading range, as well as some accelerated selling pressure with sell stops resting beneath the range getting triggered.  However, the alternate route was a bounce back up to into the range, which we saw today.

Merger news between airlines UAUA and CAL grabbed the headlines early, and as M&A tends to do, it gave traders some comfort.  The initial strength was built upon as the day progressed, leaving the indexes with some breathing room between tonight’s closing prices and the lower boundaries of the trading ranges.  That means tomorrow could quite easily be a day of rest and indecision, as we’ve seen most of the decisive moves within this range get followed with exactly that.  Nonetheless, support was defended, and the ranges were able to persist for another day.

This market still has yet to break out, which is important to remember on a strong day like this.  Follow through hasn’t been the strong suit of this market for the past 3 weeks, as both selloffs and rallies have merely led to short-term reversals.  Such is the nature of these high channels with elevated indecision.  My capital remains uncommitted for anything but the shortest of timeframes right now, until either some setups emerge which are too good to pass up, or until this range is left behind with a market move one way or the other.  One or both of those conditions will change soon, so I’m looking forward to having more swing trades come available on the heels of some great trades during April.  Until then, I’ll take what the market has to offer.

By the way, I’m doing some travel the next couple of days but will return to the video format a little later this week.  For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.

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

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays on Tuesday.  I will not be holding these overnight, and will wait for these levels to be cleared before entering trades.

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

R, VMW, HOG, NFLX, SKS, FFIV, TPX, MGM, MBI, MF, LPX, TRN, MHR, JDSU, TOL, SPF, KBH, ISLN, KNL, GRT, CPHD, ADS, USG, LMT, ADSK, MMM, BC, PNK, GIL, MSPD, SCSS, HXL

Bearish Watch:

SOHU, AIG, F, AA, RTI, PBR, CENX, ADM, UIS, BG

There will be no Hit List tonight as we are 100% cash in terms of swing trades. Once we have open positions again on an overnight basis, Hit List posts will resume.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes trended steadily lower on Friday, closing out the week with another day of distribution.  We saw the same thing take place on Tuesday, although some Wednesday stabilization and a Thursday bounce seemed to temporarily erase concerns.  However, stocks headed into the weekend with buyers notably absent.

We still have trading ranges in the indexes (which we’ll take a look at shortly) that deserve our respect until broken, but there are a few hints that are worth taking notice of right now.  The first is the added volatility we’ve been seeing.  Not only is the VIX on the rise, but we’re seeing wider day-to-day trading ranges, and that’s a shift from the quiet upside which was so prevalent recently.  Another thing I’m noticing is the increased frequency of distribution days.  Two weeks ago on a Friday, stocks ended the week with steady, heavy selling.  That also happened this past week on Tuesday & Friday, and that action gives a bit more of a toppy look to the daily charts of the indexes.  An actual breakdown will have to occur before there’s a technical reason to truly sell this market, but for now there are plenty of reasons for caution.

Heading into this week, we have a number of companies still reporting earnings, placing great emphasis on the timeframes for which new trades are initiated.  I see several setups I like here, but will as usual avoid scheduled fundamental news like earnings, so for Monday I’ll be focused on shorter timeframes.  Let’s take a look at the index charts and then get to some individual names of focus for Monday’s trading session.  By the way, I’m doing some travel the next couple of days but will return to the video format a little later this week.

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

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

GET has been holding up well and has been able to put in some rest in recent days.  Well-defined resistance is just overhead, so if this one can push through the $34.65 zone on Monday I’ll be a buyer for a day trade.  Earnings are due out on 5/4, so this will only be a day trade for me.

Chart courtesy of StockFinder

GFI is just now pushing through previous highs and has some more room to run higher if price can accelerate.  I’ll be a buyer for a day trade if this one can clear $13.60 on Monday.  Earnings are scheduled for 5/7, so this will only be a day trade for me.

Chart courtesy of StockFinder

EXH has pulled back slightly within its uptrend, and has done so on light volume.  That points to very little selling taking place at these levels, opening the door for another push higher soon.  If this one can clear $29.60 on Monday, I’ll be a buyer for a day trade.  Earnings are scheduled for 5/7, so this will only be a day trade for me.

Chart courtesy of StockFinder

TIE struggled to really break out a few weeks ago as it contended with prior resistance.  That has led to what now appears to be an inverted saucer-like pattern, which may be a topping process for this stock.  Prices are now resting on short-term support, which if broken at $15.30, would open the door for more downside.  Earnings are due out on 5/4, so this will only be a day trade for me if it triggers on Monday.

Chart courtesy of StockFinder

MTW sold off quickly a few sessions ago, and since then price has struggled to bounce.  There’s a small rising trend line which is starting to emerge on this chart, which if broken, would allow for more selling.  I’ll take it for a short sale as a swing trade it if undercuts that trend line at $13.90.

Chart courtesy of StockFinder

LBTYA rolled over recently and has been unable to bounce.  Instead, this chart now has a bear pennant pattern which would be confirmed with a break below the $27.20 level.  I’ll be looking to short sell this stock as a day trade if that lower trend line gets broken, but with earnings due out on 5/6, I will not be holding this one overnight.

Chart courtesy of StockFinder

There will be no Hit List tonight as we are 100% cash in terms of swing trades. Once we have open positions again on an overnight basis, Hit List posts will resume.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

An opening gap to the upside started the day off on the right foot, and stocks never looked back.  Instead, they trended higher for the remainder of the day, handing the major averages 1%+ moves across the board.  Volume held up well, and it truly was a strong day no matter how you measure it.

What’s notable though is that we’re still range-bound.  Tuesday’s decline was a nasty one, but it’s since been pretty much forgotten.  Such is the case when prices are bound by trading ranges.  Today’s positive tone was nice, but if the range persists, it will soon be forgotten as well.  The point I’m making is this: embrace strength or weakness once we exit this range.  Until then, more indecision is to be expected in between the boundaries of the recent highs and short-term lows (as I noted last night here).

Heading into Friday, with the indexes still not back on the run and ahead of the weekend, I’m looking to day trade.  I fully expect to see more swings setting up soon, but the best patterns I see right now are stocks sitting very high in their charts, and those haven’t paid the best.  I’m still willing to take them for trades, but only for single-day moves.  Hopefully next week we’ll get some more patterns emerging which call for multi-day plays.

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!

–

Video Stocks Discussed: THC, SHLD, GET, CPHD, X

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

GRT, THC, NFLX, R, HSY, CSTR, PHM, HOV, SPF, USG, TOL, LCAPA, SUSQ, FFIV, MGM, TRN, APPY, URI, ISLN, SHLD, SNDK, ROVI, GET, DHR, CPHD

Bearish Watch:

CAGC, CRL, AIG, X, RINO, BG

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!

Tuesday’s selloff saw no follow through today, as instead stocks were able to rebound – modestly.  The NAZ finished higher by less than a single point, while the S&P 500 and DJIA both recovered about 1/4 of what they gave back yesterday.  Hardly a relief bounce, I know, but the buyers were able to stop the bleeding.

With today being a Fed day, it would have been no surprise to see some more lively action – in either direction.  But it was not to be, and ultimately we saw the indexes chalk up a day of rest after yesterday’s selloff.

I still can’t shake the notion that some shifts are taking place here with the added volatility, elevated volume, and abrupt selloff from new nominal highs made on Monday.  Along with the lack of great patterns available right now, my caution is keeping me focused on the shorter timeframes (day trading) as we head into Thursday.  I do expect to see more swing trades setting up soon, but I’m taking it very easy on the long side and we still don’t have a ton of technical reasons to aggressively short yet.

There are a number of stocks which are starting to build some patterns, which I’ll cover in tonight’s video along with the plays I’m focused on for Thursday.

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!

–

Video Stocks Discussed: SHLD, ORLY, URI, ISLN, FFIV, KNL, CSTR, ROVI, BIIB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

KNL, FFIV, CSTR, WMS, AEM, WAL, SA, ROVI, ORI, GFI, SHLD, SNDK, AF, ORLY, NFLX, URI, ISLN

Bearish Watch:

BIIB, MASI, CAGC, UTHR, MEE, CEPH, RINO, MTG

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 down on the heels of overseas weakness offered another dip to be bought this morning, and that gap was actually filled.  However, once the indexes had recovered, they weren’t able to hold their ground for long.  Heavy selling kicked in, taking them decisively lower, and this time the dip-buyers failed to appear.  After a modest bounce, new lows were made on the session to mark the 2nd day of distribution on the charts in just the past 8 sessions.

Today’s downside brought about the 3rd attempt at a break of the rising trend line for the NAZ, and this time it stuck on a closing basis.  The S&P 500 and DJIA each also gave up considerable ground, chalking up the biggest percentage decline we’ve seen since February 4th.  The growing volatility of late, along with key technical breaches of uptrend lines, is offering plenty of reason for caution at this point.

I’m in cash, and with this recent rally having gotten somewhat long in the tooth, I’m willing to wait to see if this dip gets bought.  At some point a correction is going to set in, and although we just saw new 52-week highs made yesterday, buying stocks right here seems to hold more potential pain than potential in the short term.

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!

–

Video Stocks Discussed: AEM, X, MEE, RINO, MTG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

STRI, AEM, GG, SA, FFIV, SUSQ, WAL, POZN

Bearish Watch:

GMCR, CAGC, UTHR, AMLN, MON, MEE, CEPH, BUCY, STT, MOS, X, ADM, GDP, MASI, RINO, MCO, TX, MTG, AGU, POT, IPI, BIIB, BG

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