Good evening StockBandits!

The most obvious complaint about the price action of late is the fact that the indexes keep climbing without the supporting factor of heavy volume.  Today we saw that continue, as the major averages tacked on modest gains once again, with only light volume to go along with it.  That points to a lack of institutional participation, although it doesn’t seem to be deterring the bulls at all from staying active.

The indexes reached their best levels of the month today, and now sit slightly better than halfway back up to the January highs.  To say the market has become short-term stretched to the upside is certainly fair, although that could persist for longer than logic would suggest.  This evening, the Fed raised the discount rate, and the futures markets are responding with weakness.

That could deliver a soft open tomorrow morning, but how that gets treated will be even more important.  If it brings about more selling as the day progresses, then perhaps the relief bounce has run its course for now.  If on the other hand, the bulls use the weakness as an opportunity to buy, then the slow grind higher might have a little further to carry.  Toss into the mix the fact that it’s options expiration Friday, and it should be an interesting day to say the least.  I’m planning to approach it with respect, and am still waiting for better conditions to emerge for swing trading before committing capital.

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: FOSL, AMT, MDVN, FDX, CP, BGC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, TWC, RVBD, HOLX, LEAP, HGR, MR, FOSL

Bearish Watch:

UTHR, IOC, AMT, PKX, AMSC, MDVN, IVN, FDX, FSYS, MA, R, MSTR, SWM, CP, BGC, WFR

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 bounce on weak volume added to the recovery off the February lows, but it also added reason for skepticism.  Not only were key levels of overhead coming into view, but the limited participation in the upside offered plenty of reason for caution as the odds of a short-term pullback increased.  Today, we saw more strength in the market, albeit of the muted variety, as each of the indexes posted modest gains on continued weak volume.

Needless to say, this market is giving plenty of reasons to stay sidelined, as this type of rally typically isn’t to be trusted for very long.  Nonetheless, the buyers are still building on the relief bounce, and tomorrow could prove to be somewhat pivotal as key resistance levels are now within spitting distance.  With some key earnings reports this evening and some economic news scheduled for tomorrow morning, it will no doubt be interesting to see what’s used for fuel on Thursday.

There are certainly a limited number of tradable patterns in the charts tonight, which is again keeping my timeframe abbreviated heading into tomorrow.  Many stocks have made large V-shaped recoveries over the past couple of weeks, which leaves few candidates on both the long and the short sides.  More setups will emerge in the days ahead, so it’s our job to take what’s available each day and utilize it as best we can while waiting for more opportunities to get aggressive.  Right now, patience is a must.

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: PKX, MDVN, SWM, PHM, HOLX, IOC, AMSC, BGC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, TWC, AFFX, PHM, HOLX

Bearish Watch:

IOC, PKX, AMSC, MDVN, AMAG, FDX, FSYS, MA, PBR, R, MSTR, SWM, CP, RAI, BGC, GPN, FE

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 key levels on the horizon heading into this holiday-shortened trading week, the major indexes were able to push through today with solid gains across the board.  The bulls resisted an opportunity to raise cash as former support zones were approached, and instead continued buying stocks as the day progressed.  This keeps the recovery bounce going, but it’s important to note that the bears retain an edge with short-term lower highs still in place.

I mentioned last night this is options expiration week, which often times brings with it some volume spikes.  Today, despite the widespread strength and intraday uptrends, volume was still lacking.  That may be giving the bears some solace tonight as they wait for the bounce to possibly stall out in the coming days before becoming more active.  It is notable though, as it indicates rather limited institutional involvement in this bounce, implying that just a little heavy selling could easily undo this progress.  As a result, caution is still very much warranted even after a rally like we saw today.

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: MGA, ACXM, AFFX, AMAG, MA, TM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MGA, ACXM, PVX, TWC, LXK, TPX, EMR, AFFX

Bearish Watch:

AMSC, MDVN, AMAG, FSYS, MA, TM, CP

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!

Last week we saw the indexes continue to try to claw their way back from the most recent selloff, but the bulls didn’t make a lot of headway.  Not only was price unable to reclaim key levels, but volume was severely lacking on the upside as well.  That hints at fewer traders participating in this rally, which is grounds for caution in case it happens to fail.

The post-holiday volume should return this week, along with the heavier volume which typically accompanies an options expiration week, so that may offer more clues for us on the technical side of things.  One thing’s for sure though, which is that the character of this market has changed significantly since the highs were set in January, and it’s making for some tough sledding for those on the long side of the tape.

Those who have been caught on the wrong side have so far used each bounce as an opportunity to raise cash and dump shares, so it will be interesting to see if that occurs again this week.  For now, the sellers are still in charge, the bulls are struggling to recover, and stocks are still building new bases.  No matter which way this market moves, there will be opportunity for us as traders.  At the moment, the shorter timeframes are the best place to be operating due to the ability to manage risk as key levels come into view, so that’s my focus heading into tomorrow.

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: ACXM, CAGC, EL, MED, MA, BAC, UTX

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, CAGC, EL, INCY, MED, ANN, TPX, UAUA, PVX, GRA, BEXP, LNCR

Bearish Watch:

ABV, AMSC, BA, FSYS, MA, FWLT, BAC, FDX, UTX, SINA, GES, COF, FAS, TXT, TIE, VAR, RL, MRO

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 weak finish offered no compelling reason for the buyers to produce follow through today, so instead we saw a technically insignificant day.  Some selling pressure took the market to its lows of the session mid-morning, and from there a slow grind higher continued into mid-afternoon, but a big surge of buying never kicked in.  The market slid gradually into the closing bell, leaving the indexes little-changed on the day.

It’s too early to tell whether today’s lack of follow through signals an end to the bounce which began on Friday, or merely some indecision at this point.  The lows set last week are still intact, although it wouldn’t take much to revisit them (or break them).  This market is clearly struggling to find its identity of late, leaving the lingering question of whether the correction will continue or not.  The upside is certainly finding few takers, so it’s still wise at this point to exercise caution – particularly while mixed signals are still being given by price and volume.

One final note is that I will not put out a newsletter Thursday night this week, as I will be traveling.  We also have a long weekend with the market being closed on Monday in observance of the Presidents Day holiday, so we’ll be back to the usual schedule starting Monday night.

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: EL, IBM, YGE, CNXT, MGA, IVN, AMT, TSL, PCX

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MGA, PFCB, NDN, EL, CNXT, BEXP

Bearish Watch:

H, TECD, F, IOC, OIS, YGE, PVH, AMT, MDVN, TSL, OSG, PCX, JOYG, IBM, KCI, PLXS, GCI, FCN, MELI, IVN, RL

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 set the stage for a day of upside, providing stocks with a head start in the green.  After some mid-morning profit-taking, the buyers moved right back in, sending the market to its best levels of the session.  The indexes backed off slightly from there into the closing bell, unable to finish strong.  It was the best rebound we’ve seen since the January highs were put in, but the light volume and afternoon profit-taking make it difficult to trust.

Just as one decline does not make a weak market, neither does one day in the green make a strong market.  It seems as though the market is attempting to carve out a new area of support over the past few sessions.  We can of course consider the lows from last Friday as the lines in the sand, but what will also be important to monitor is how far this bounce carries and if it gets used as another opportunity for the bulls to raise cash.

So at this point, the bounce from the pullback lows is still underway, but the market is by no means out of the woods.

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: EL, IOC, LH, ABFS, SINA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MGA, LYV, PFCB, TPX, EMR, EL

Bearish Watch:

SYK, H, GLD, WLL, IOC, APA, ANR, LH, YGE, ABFS, AMSC, MAC, BBY, TSL, SINA, TXT, TIE, PCX, OI, AMAG, HP

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!

What appeared to possibly be an exhaustion move on the downside last Friday resulted in a hefty bounce off the session lows, and it carried over into today’s early action.  This morning, we saw each of the indexes spend some time creeping up, but the pace of the advance was weak and so was the volume.  Ultimately, the strength was sold and the market finished another session in the red.

We’re at a tricky spot right now, for a few reasons.  First, the market needs to bounce and/or consolidate, but the volatility of the past few days has not allowed either to take place.  Second, the volume levels are sending mixed messages.  It was consistently heavier on the downside than it was on advancing days, until the last two sessions when that was tossed out the window.  Finally, there are very few setups of high quality worth trading, at least not for anything more than quick flips.  So I’m exercising a lot of patience heading into tomorrow, awaiting clearer signals and keeping my timeframe brief for new trades.

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: PFCB, AMZN, AXP, CSIQ, YGE, SNDA, CAT, LH, ABFS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LNCR, SHLD, PRGO, SNDA, PFCB

Bearish Watch:

CAT, UTX, AVY, AVB, LH, CSIQ, AMZN, YGE, ESI, ABFS, AXP

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