Good evening StockBandits!
The aspect of the price action we’re seeing in this market that I’ve harped on the most lately has been the tendency to see gaps get filled. We’re caught in wide trading ranges, which naturally invites more back and forth and less continuation. With elevated volatility, however, the tape has been sensitive to headlines and quick to jump or dump.
The frequent creation of gaps has only been matched by the quick filling of those gaps. Some have taken a week or two to fill, while others (like today’s) have only taken hours. This morning, a strong open and some additional buying right out of the gate left the market up big by mid-morning, but the closing numbers don’t at all reflect that, thanks of course to yet another reversal and gap fill. The relatively minor declines we saw on a net basis paled in comparison to the intraday swan dive. Ultimately, it’s exhibit 34 in the case of “we are in a trading range.”
At the moment, I’m finding very few names which look trustworthy for a multi-day move. Hence, I’m staying picky and protecting capital via shorter timeframes.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
