Good evening StockBandits!
Stocks jumped out of the gate this morning to kick off a new week of trading with a sizeable gap. The early strength wasn’t able to hold up though, and stocks tumbled into negative territory before it was all said and done. After the bounce we’ve seen from the June lows, to see an upside gap get sold like this isn’t too surprising. It’s also another example of why Monday morning optimism should be greeted with some skepticism.
Although the day’s gains were erased, it was interesting to see former resistance zones serve as support – for the time being anyway. The S&P 500 respected 1105 on the pullback, and the NAZ was able to hold 2282. We saw the RUT fail once again to clear 670 on a closing basis, so our levels remain valid until further notice.
Tomorrow is the start of a 2-day FOMC meeting on interest rates, with the announcement coming on Wednesday at 2:15pm ET. Although no news should be anticipated tomorrow, the mere reminder of a 2-day meeting leaves traders less willing to commit, which often creates an environment best for quick-flip trades. Keep that in mind as we head into Tuesday’s action, as I’m only eyeing day trades after a thorough look through tonight’s charts.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
–
Video Stocks Discussed: VXX, F, MED, CAT, LEN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
DPS, FAZ, VXX, TWM
Bearish Watch:
MED, JOE, HOG, RL, JLL, FLS, HD, BP, WDC, UPS, ALB, EQR, CF, MON, FO, SHLD, MAR, F
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.
