Swing Trading and momentum investing stock pick newsletter and swing trading service.
The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
No positions – 100% cash
No open positions.
No closed positions.
Good evening StockBandits!
Last week, we saw the NAZ and S&P 500 each testing short-term support on Wednesday, and despite brief penetrations of those levels, the market was able to rally back enough to end the day still in the trading ranges which began one month ago. However, Thursday’s arrival brought with it swift and decisive downside price action, easily undercutting those support levels on expanding volume. The DJIA also broke its 10-month uptrend line, slicing through it without hesitation after several recent tests. And finally, rather than producing even a modest relief bounce on Friday, the selloff continued, matching Thursday’s losses as traders fled from stocks ahead of the weekend.
Some feel that the bank reform proposals put forth by Obama on Thursday set this all in motion when financial stocks took such a big hit, while others have sensed it was inevitable that a correction would at some point kick in after such a tremendous market run for the better part of a year. Regardless of the cause, it does appear the market is undergoing a change of character here, based not only on the steep declines, but also the lack of effort on the part of dip buyers. That has been the crowd which has prevented selloffs from lasting or being severe, but they were nowhere to be found for the past couple of sessions. If they’re losing their resolve, then we can expect some different price action going forward.
One thing is for certain, which is that many individual charts now look very different than they did just a few days ago. Most are shattered, in fact. While that might mean limited setups for a few days, eventually it’s going to mean a whole different batch of names to focus on. We’re either going to need to see some consolidation set in, a relief bounce which struggles to hold, or a combination of the two, but pretty soon there should be many more setups even if it’s slim pickin’s tonight.
Volatility has spiked, which is a good thing, and the market now remembers that it’s able to move in both directions, which should keep things quite interesting in the days and weeks to come.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
The Bandit Broadcast Video – Click to Watch!
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NONE TONIGHT
DPZ, CFN, MAPP
JLL, MGA, NFLX, XCO, AMZN, EDU, CP, LIFE
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.
The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
No Positions – 100% Cash.
JAH stopped
No open positions.
JAH turned lower this morning along with the market, triggering my stop loss right on the open to take me out of my final position for a 2.2% loss. Yesterday that level had been validated as support with the stock bouncing from there, but today it was undercut decisively, leaving this stock with no tradeable pattern. I’m out with a manageable loss, and will leave this stock alone until a new pattern is able to emerge.
Good evening StockBandits!
Following Wednesday’s tests of short-term support (which held on a closing basis), the major averages rolled over hard today to undercut those key levels on a closing basis. This is a technical breach which not only gives us a resolution to the trading ranges which have held in recent weeks, but also suggests some downside follow through could arrive rather easily as profit-taking kicks in for the first time in a while.
Today’s decline took the DJIA down through the uptrend line that extends all the way back to the beginning of this rally in March 2009, while the S&P 500 broke its uptrend line which began in early November. This kind of action might cause the bulls to reconsider their stance, at least temporarily, and apparently they did today as no attempt was made to buy the dip. Given the strength of the uptrend since last spring though, as well as consolidation phases at various times in recent months, there are some potential support levels we’ll keep an eye on just in case downside follow through is seen. At the very least, this should help to shake up some individual charts for us.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
The Bandit Broadcast Video – Click to Watch!
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NONE TONIGHT
PENN, CRL, CFN, HUM, LUV
V, GMCR, LAMR, F, JLL, AVB, NFLX, MELI, SLG, AMZN, AM, DECK
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.
The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
IOC stopped
JAH turned lower today along with the overall market, getting to within just a few cents of my stop loss before stabilizing. From there, it was able to rebound some, giving it a little better cushion heading into tomororrow. Nonetheless, this one has yet to confirm the pattern with a close beyond the trigger price, so it still has a lot to prove. My stop will stay in place heading into tomorrow, as today’s low validates it. Hopefully we’ll see some better volume kick in as well.
IOC had news this morning of an oil discovery which sent the stock running higher in the pre-market and ultimately gapping higher once the stock opened for trading. I was stopped out right after the opening bell ($75.35), even though the stock dropped a couple of points for a brief time right after that. It recovered quickly though and spent the rest of the day deep in positive territory. Sudden unexpected news of this nature can be frustrating when it interferes with the technicals, but that’s part of trading and it will happen from time to time. We also know that over time we’ll catch some favorable news as well, which helps it all even out. Nonetheless, I’m out of this trade with a 1.8% loss and will avoid it for now due to the pattern failure.
Good evening StockBandits!
After Tuesday’s solid advance, today’s action was every bit as weak. A minor gap to the downside this morning never inspired the buyers to step in, and instead prompted some profit-taking. The DJIA headed lower by more than 200 points at its worst level, and the NAZ and S&P 500 each incrementally broke their short-term trading range lows. However, the bulls finally defended those levels, producing a moderate bounce in the afternoon to lift the indexes off of key levels. In the end, Tuesday’s gains were given back, and we’re now just a few points from last Friday’s closing levels.
Today’s volatility is actually a welcomed sight, as it indicates the emergence of some kind of battle between buyers and sellers. We still have the indexes range-bound, so nothing of technical significance has taken place, but if anything today’s action offers us two bits of information. The first is that the bulls are losing steam by failing to produce follow through to Tuesday’s strength. The second is that the bulls still aren’t ready to walk away, and currently still seem committed to protecting the downside.
So if the bulls are more interested in protecting the downside than in building on the upside, this range might persist a little longer. Either way, it is nice to see some added emotion, and I’m rooting for more volatility in the days and weeks ahead, as that will offer us more opportunities for short-term trading.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
The Bandit Broadcast Video – Click to Watch!
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NONE TONIGHT
PNC, PXP, GNW, ACI, CIT, MTB, CFN, MR, AXP, TLB
ANF, SYNA, NFLX, FMX, TUP, MELI, XCO, PCX, AMZN
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.
The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
JAH & IOC triggered
JAH triggered a buy today as it cleared the $32 level, turning higher after its recent pullback within the overall uptrend. Today’s action was mildly positive in that the stock did participate with the overall market strength, but slightly muted in how far this initial bounce day was able to carry. I do still like this play as a turnaround candidate, as support has held and the stock is now moving higher again. Today’s volume was rather light though, which means I’ll be watching this one a little closer on Wednesday in case an adjustment is necessary. For tonight, I’m making no changes.
IOC triggered a short sale today as it gapped lower and slightly through my intended trigger price, opening at $74.01. I still took the trade (in accordance with the swing trading strategy), and it is off to a fair start. The stock nearly hit Target 1, getting to within just 13 cents of it before bouncing, but ultimately it does appear to be rolling over from the consolidation, so follow through will be the key. I have tightened my stop tonight in order to reduce some risk in the event of a reversal, placing it not far above today’s high as we head into tomorrow.
No closed positions.
Good evening StockBandits!
The bulls jumped out to the early lead today for this holiday-shortened week, sending the indexes climbing higher with solid advances across the board. A relatively flat open was followed by a clean morning uptrend, and as the day progressed the indexes simply added a few more points while primarily preserving the early gains. In the end, each finished near their session highs.
Today’s move puts the S&P 500 right at key short-term resistance at 1150, while the NAZ ended just a few points shy of its January high, still range-bound. Obviously it wouldn’t take much to produce a breakout from here, especially with the bulls in the driver’s seat across all timeframes. It’s follow through that’s most important though, so if we do see new highs established tomorrow, they key will be whether or not it invites more buying. Many stocks are in solid uptrends but still deserving of rest, so despite the widespread strength, selectivity still plays a role for us as traders.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
The Bandit Broadcast Video – Click to Watch!
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NONE TONIGHT
SYK, V, H, F, DRWI, SWK, BUCY, HUN, JAH, PNC, PXP, GNW, AVB, ZION, HIG, ONXX, MEE, GLD, IVN, AXL, TEX, PDS, HAL, PCX
ANF, SYNA, NFLX, FMX, TUP, IOC
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.
The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
NAV & KIM stopped, JAH & IOC added
No open positions.
KIM head faked last week as it attempted to break out but couldn’t hold above resistance. Instead, the stock fell back into its congestion area, and Friday’s weakness triggered my stop loss. I’m now out of this trade with a 3.5% loss, which is disappointing after the quick turnaround. Nonetheless, this stock isn’t acting ready to run, so I’ll take the loss and wait for a new pattern to set up before considering another entry.
NAV tried to break out last Thursday by poking through resistance, but here again this stock fell back into its consolidation zone. I tightened my stop Thursday night because of the failed initial breakout, and my stop was hit Friday as weakness set in, handing me a 2.1% loss. This one may need more time to consolidate, so I’ll leave it alone until it can exhibit better strength.
Good evening StockBandits!
After seeing new highs in each of the indexes last week, Friday’s downside ultimately made the difference as minor losses were posted on the week. And although Friday’s action wasn’t pretty, the market was able to recover from its worst levels of the session to cut some of the day’s losses. We have yet to see any technical damage be done yet, which keeps us in short-term trading ranges and intermediate-term uptrends while we watch for some range expansion to arrive. Volatility has steadily contracted, but at some point we’ll see emotions play a greater role in the day to day action, so we need to stay on our toes.
The NAZ remains in a well-defined trading range, while a similar but tighter range is starting to emerge in the S&P 500. It tested a pair of short-term levels last week with 1150 twice serving as resistance and 1131 twice serving as support. The 1131 area corresponds with the December highs, so to see former resistance now acting as support is one way to further validate that level. If we do see a close beneath that level, it would suggest further profit-taking, and therefore would offer grounds for added caution on the long side in the near term. That same level also corresponds with the rising trend line which began in early November and has been offering support during the past couple of months. A break of that trend line would be another technical development worth noting, as the downside may accelerate if that occurs.
We have a holiday-shortened week this week, so let’s see what happens. Friday’s dip helped to shake up some of the charts, and I would expect to see more trade candidates this week if some consolidation follows. The bulls are still in the driver’s seat, and all eyes will be on them to see if they’re going to keep driving the action in the short term. The creation of lower highs and lower lows before the health of the longer-term trends would be threatened.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
The Bandit Broadcast Video – Click to Watch!
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JAH has pulled back in recent days, but the stock has closed at nearly the same level for the past 3 sessions. Price is also finding support at a prior key level, and a turn higher through the descending trend line at $32 could put this one back on the move to the upside. I’ll be a buyer if that occurs, and will keep a tight stop just below.
IOC made a monster move in recent months with a relentless uptrend, but suddenly this stock seems to have changed character with a big move lower on heavy volume. It’s really struggling to bounce here, and a move down through the rising trend line at $74.35 could bring sellers back into the picture. I’ll be going short this stock if that occurs.
SYK, H, SWC, APL, JAH, BCRX, FRT, AGCO, PENN, GNW, PDC, BA, PXP, PNC
XCO, CRM, SNDK, CSKI, EBIX, ARE, SYNA, FCN, UPL, ANF, AET, FMX, TUP, GPN, MELI, EQIX, TECD, IOC, SLG, INFA
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.
