Good evening StockBandits!
The first full trading week of 2015 is in the books, and we saw a little bit of everything. It started out with heavy selling into Tuesday’s low, was followed by upside gaps and continuation through Thursday, only to stumble again Friday. That means the V-shaped battle is underway with the biggest looming question now gaining some validity: is a lower high forming?
The daily charts reveal trading ranges going back several weeks, with Friday’s finish nearer to the center of the range than the upper boundary. If the ranges persist, then the lower high situation becomes less relevant – at least until a downside break takes place. For now, there’s clearly some indecision on both fronts and that warrants continued selectivity with new trades.
With this back-and-forth tape we’re in, I’m sticking with abbreviated timeframes on new plays heading into Monday’s session. I’m back to cash as of Friday with QIHU stopping out as a swing.
** As a side note, I have an appointment Monday afternoon which will leave me very little time to prepare a full report, but I’ll share the setups I find after working the charts. It might be posted later than normal and may be brief, fyi.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
