Good evening StockBandits!

The market got off to a very weak start this morning as futures traded considerably lower.  The gap down open wasn’t met with any additional selling, or buying for that matter, as it apparently left many traders somewhat stunned and uncertain of what to do.  Given all the recent indecision we’ve seen, that’s no big surprise.  Ultimately, the indexes caught an afternoon bid which was ridden all the way to the close.  That erased nearly all the day’s losses, leaving the indexes only fractionally lower by the closing bell.

Today’s action helped to further validate the short-term trading range boundaries we looked at last night, but no new technical developments emerged.  Instead, it was another day spent inside the short-term range, so we’re still awaiting a move one way or the other to get out of it.  The early weakness and late strength point to a continued reluctance of this market to pull back, but the bulls haven’t pressed prices higher either.

Until one of the boundaries gives way, we can expect more noise and indecision within this range.  As a result of the indecision and tomorrow’s slew of economic reports, I’m looking to keep my timeframe for new trades short heading into Friday.

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: IT, MED, DPZ, HUN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

JDAS, IT, WLP, MED, CAKE, WFMI, SMCI, DPZ, APH, HUN, LZ, TASR, JAH, AEZ, LFL, SY, NIHD, PLL, CLF, ARO

Bearish Watch:

TIF

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!

No downside follow through was seen today after Tuesday’s pullback on expanding volume.  Rather than see continued profit-taking, the bulls were able to prop up prices for another day, although the short-term highs are still intact.  Today’s volume was light, which is something we’ve seen quite a bit of lately, pointing to a continued lack of institutional involvement.

The indexes now find themselves in short-term trading ranges, which shouldn’t persist for very long due to the narrow nature of them.  The highs of a few days ago mark the upper boundaries, while yesterday’s low marks the lower boundary.  Those are the levels I’ll be focused on heading into tomorrow, and until we see this market being able to show some better follow through, I’ll be looking to limit my activity.  I would expect that to change shortly, but as of tonight there just isn’t much momentum in either direction yet.

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: WLP, GD, LZ, RL, SPG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RAX, FOSL, CMG, CAKE, APL, WLP, JDAS, IT, SMCI, TCO, DPZ, DGIT, LCAPA, APH, HUN, GD, LZ

Bearish Watch:

FSYS, PKX, PBR, TIF, RL, SWM, ATW, IMA, SLB, SPG

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 failure to move higher left the indexes looking vulnerable to a pullback, as multi-day win streaks came to a halt.  Although the market finished only fractionally red, the bars on the daily charts implied that the bounce had stalled out and may soon give way to some profit-taking.

Today, that notion was confirmed with weakness right out of the gate.  Early selling pressure showed cash getting raised across the board, but the pace of the decline slowed by the time the afternoon arrived.  A minor bounce attempt lifted the market only slightly from its lows, suggesting that there may be more to come in terms of selling in the near term.

The 2-week bounce left many stocks hugging some rather steep rising trend lines, and many of those were broken today.  These kinds of moves often tend to establish lower highs on the daily charts, so that’s what we’ll need to closely monitor in the days and weeks ahead.  For now, the long side seems to have less appeal, so let’s see if that remains the case on Wednesday.

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: RAX, PKX, RL, SWM, LFT

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RAX, WFMI, WLP, F, TCO

Bearish Watch:

TIF, PBR, CENX, PKX, FSYS, RL, UA, SNA, MDVN, BGC, WFR, SWM, SPR, AMAG, CAT, FLIR, LAMR, R, ATW, LFT

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 a solid streak of winning days on the line, the indexes entered the new week with some modest strength this morning.  Some minor upside to start the session was quickly erased as selling hit the tape right out of the gate.  The damage was minimal, however, as a low was found just 30 minutes after the open.  The action from there was quite choppy and uneventful, and although the market climbed slowly back to positive territory, some late-day selling pressure left the indexes just slightly in the red by the closing bell.

To see the streak get broken in this fashion is the best-case scenario for short-term bulls, as virtually nothing was given back and the pressure of consecutive gains is now gone.  Nonetheless, this market is due for some rest, so whether it’s more quiet days like today or an actual pullback, it would be very healthy to see either at this point.

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: WFMI, CENX, SNA, MDVN, TIF, PBR, LAMR

Swing Trading Candidates:

TIF has been bouncing back on diminishing volume, and now is stalling out just beneath a key resistance area.  A move down through the rising trend line will trigger a short sale for me at the $43.10 level.

Chart courtesy of StockFinder

PBR has been bouncing back on diminishing volume over the past few weeks, and this one could undercut the rising trend line any day.  A move down through $42.10 will trigger a short sale for me as a swing trade, as that would mark yet another lower high on this daily chart.  Rising trend lines have offered good entries in the past, which also is worth noting.

Chart courtesy of StockFinder

LAMR has rebounded from the February low to test a key resistance area the past two sessions, but the stock has been unable to reclaim it.  Upside volume has also been light, which is bearish.  A move down through the rising trend line at $30.20 will trigger a short sale for me, as that would indicate the start of a turn down from this key area.

Chart courtesy of StockFinder

Bullish Watch:

VRX, WFMI, WYN, APL, KLIC, MGA, AFFX, SMCI

Bearish Watch:

TIF, PBR, CENX, NTRI, PKX, UA, SNA, MDVN, SWM, SPR, IR, LULU, FLIR, WLL, LAMR, FCX, R, TM, SNI

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!

On Thursday after the market had closed, the Fed raised the discount rate, which sent the futures markets heading south.  The stage was set for a weak open on Friday, perhaps even a sizeable gap to the downside, on the heels of what had already been a strong week.  To see the bulls take profits after such a big bounce would have come as no surprise.

However, no selling was seen on Friday.  Instead, the futures rallied steadily through the night, and the market opened relatively flat on Friday.  That inspired some modest strength after the opening bell, taking the indexes into positive territory for the 4th time last week, marking a clean sweep for the bulls during the holiday-shortened week.

The upside did not come without concerns though.  Not only has the bounce from the February low occurred in nearly a straight-up fashion (virtually no rest), but there’s been a distinct lack of volume to go along with it.  That points to limited (at best) participation on the part of institutions, which makes one wonder who will defend this move once the next pullback begins.

There’s little question at this point that the market has become short-term stretched and therefore due for a dip, so the focus will shift from ‘when’ that happens to more of a question of ‘how deep will the pullback be’ once it does arrive.  It could very well be that this bounce ultimately results in a lower high on the daily charts, but whether the February low holds or not will be the determining factor for how aggressively stocks can be sold in the weeks and months ahead.

Heading into this week, many stocks (and the indexes alike) have V-shaped patterns without much basing, which means it’s a time for staying nimble and selective.  We may enter a short-term trading range if the next dip is shallow, so that’s something to be on watch for as the next few days unfold.

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: RAX, FOSL, FSYS, AMSC, AGU, HUM, UA

Swing Trading Candidates:

UA has bounced from its lows over the past couple of weeks, but volume has failed to support it as it continues to decline.  This sets up a bearish price/volume divergence which interests me for a possible play on the short side.  A break of the rising trend line will trigger an entry for me at $25.40, but only once the break occurs.

Chart courtesy of StockFinder

Bullish Watch:

LCC, SFSF, VLTR, RAX, HOC, NETL, VRX, SAFM, FOSL, CMG, TSTC

Bearish Watch:

IOC, NTRI, PKX, FSYS, AMSC, RL, UA, BGC, WFR, SWM, ASIA, HUM, AMAG, AGU

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