Good evening StockBandits!

The highs for the session were set in the opening minutes on Friday, but the indexes were still able to stand their ground.  The day was characterized by light volume and a trading range, and in the end we saw the market finish right near Thursday’s closing levels.  The NAZ and S&P 500 were down by less than 1 point each, while the DJIA added a modest 12.  All in all, it was a day of rest, which this market badly needed after the big recent run.

Just as one day does not a trend make, nor does one day qualify as adequate rest after a 5-week rally.  For the past 11 sessions, we’ve seen only 2 declines on the NAZ – both of which were by a fraction of a point.  That’s about as close to a non-stop run as you will find, and it makes it extremely difficult to get on board here.  The likelihood of profit-taking kicking in is rising by the day, but it hasn’t begun yet.

That means it’s equally tough to get short here as it is to get long after this run.  It may persist, but it’s a high-risk spot for new buys, unless they’re only for quick flips.  Ideal trades offer great reward with limited risk, but with the market so stretched to the upside, it’s difficult to imagine a lot of room beyond current levels for the rally to carry before a decent pullback or rest phase arrives.  Either one would do this tape a world of good, but for now the wait continues.

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: PXP, SANM, WLL, LFT, CENX, GCI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MED, WLL, F, DPZ, LFT, LCAPA, PXP, SANM, LEA, SOHU, CIT, FTI, BEXP, CYT, ALTR, VIT, TIVO, GMCR, RYL

Bearish Watch:

RAX, CENX, ANW, GVA, VMC, REGN, GCI

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 minor attempt at some downside this morning never gained traction, and instead the day ended with some late strength.  That resulted in the 9th gain in the past 10 sessions for the NAZ and S&P 500, which is the data behind the feeling of this being a one-way market.

What’s so interesting to me is that we’ve seen very limited intraday momentum on the upside, despite the nonstop action on the daily charts.  That means for day trading it’s a quick-hit environment, and it means for swing trading there’s currently a distinct lack of high-quality setups given the inability of this market (and individual names alike) to put in adequate rest.  We desperately need that for good bases to form, but at the moment, the wait is still on.

As we head into the end of the trading week, it’s important to remember that it’s still early March, and trades need not be forced at this time.  Capital preservation is the best course of action right now if you’re not a day trader, so don’t feel guilty about sitting on your hands.  That’s going to change, and we’ll see much better conditions emerge for multi-day moves and swing trading once volatility is able to increase.  That may happen sooner than later – anything is possible in the market.  I’ll certainly keep digging for the best setups around, and I’ll present them here as I find them, just as I have for 5 1/2 years.  Make it a great end to the week, and I’ll see you back here on Sunday!

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: SINA, BBBB, BID, CNAM, GVA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SFD, VRX, CMG, MED, APL, WLP, F, UAUA, LCAPA, BBBB, BID, CNAM, BEXP, CIT, AMG, HOT, SINA

Bearish Watch:

AGU, ANW, GVA

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 bulls notched another victory today, albeit largely a psychological one, as the major averages finished green across the board.  The NAZ was the standout with a gain just shy of 1%, while the DJIA and S&P 500 finished just a few points above Tuesday’s closing levels.  The intraday action sure didn’t offer much, aside from a few news spikes in individual stocks, with the indexes spending the bulk of the day bound by trading ranges.  That made for some churning conditions, and a lack of intraday momentum, although on the daily charts the upward movement is still underway.

At the risk of sounding like a broken record, this market is badly in need of some rest.  With each day, that’s becoming more and more of a necessity, as the current advance is not happening at a sustainable pace.  That isn’t to suggest a big pullback is needed, but even several days of sideways price action would help.  The shorts are on the run as each day brings more green, but at some point that’s going to change.  Just a year ago it felt like the market may never go up again, and now it feels like it may never go down.  Both are incorrect, and that’s important to keep in mind in this kind of one-way environment.

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: LCAPA, SWK, BEXP, VMC, QCOM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LCAPA, WLP, VRX, BID, SWK, MTB, VOLC, BEXP, CTSH

Bearish Watch:

ANW, RHB, VMC, BYI

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!

This morning we saw early weakness quickly erased as stocks were bid back up.  The indexes climbed to their best levels in several weeks (including another 52-week high for the NAZ), but gave back the bulk of their gains with some afternoon selling.

What’s so interesting is that the action this morning may have been the work of bears who have needed to cover short positions on any weakness, while the afternoon selling may have been the work of the bulls who sense an opportunity to sell into strength.  This ‘turnover’ type of action may also have contributed to today’s increased volume, as well as the insignificant net changes we saw on a closing basis.

Nonetheless, the indexes continue to show strength, and that can’t be ignored.  While we do need to respect the price action, tonight it’s tough to find low-risk buys out there.  After all, I have to wonder why a stock hasn’t participated in a rally of this degree if it truly is bullish.  As a result, the majority of the plays I’m looking at for Wednesday are on the short side.  That doesn’t make me bearish – just an opportunistic trader who sees better risk/reward profiles on that side of the tape – in the ultra near term anyway.

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: VRX, ANW, BYI, QCOM, SPWRA, RAX

Swing Trading Candidates:

RAX bounced nicely from its February low, but in recent weeks it has been unable to build on that strength.  It has instead lagged the overall market, and now is resting just above short-term support.  A break of the $18.90 level could set this stock free to head back down toward its lows, so I’ll be looking to initiate a short position if that break takes place.

Chart courtesy of StockFinder

Bullish Watch:

VOLC, MTB, SWK, LEA, DPZ, VRX, SWK, MU, LZB, TSRA

Bearish Watch:

FCN, ANW, RAX, FSLR, UNT, RIG, AU, BYI, QCOM, DNB, SPWRA

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!

With an impressive 6-session streak on the line heading into today, the S&P 500 fell a fraction of a point shy of making it 7 today, finishing down just a couple of ticks on the session.  The DJIA also finished slightly in the red, but the NAZ was able to tack on a handful of points in what overall was just a day of rest.  It seems that after such a big run last week, the bulls were confident enough not to do any serious selling, yet patient enough not to chase stocks higher to begin the week.  As a result, we finished right about where we started.

It was interesting to see QQQQ make a new 52-week high today by 1 cent and then turn back down slightly this afternoon, as that major ETF had not yet cleared the January highs.  Apparently that nudge was just far enough to get a few shorts to cover, although no follow through was seen.  There are plenty of bears in pain after the recent run, but if the overall trading range remains intact, they’ll have some opportunities ahead of them.

Overall, many stocks are still stretched rather thin from their recent run, but until the market contracts, that’s likely to remain the case.  We’ll at some point see the indexes begin to move more in unison, but at the moment the NAZ is the only one hitting new 52-week highs.  Either it will relent and move more with the senior indexes, or they will pick up the slack.  While we wait, selectivity with new plays will be critical.

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: MU, TSRA, LZB, SWK, FCN, ANW

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SPR, APL, MED, H, RIMM, LZB, ACXM, LEA, NKE, XTXI, CDE, SWK, MU, TSRA

Bearish Watch:

FSLR, FCN, ANW, GVA, PXD

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