Good evening StockBandits!
The streak of declines was interrupted on Friday as early volatility eventually gave way to increasing strength as the day wore on. The averages tacked on 1-2% each, going out right near their highs of the session. That reduced the losses for the week, but some ground was lost nonetheless.
We saw a similar initial rebound (on 1/7) to the early-January slide, which saw exactly one day of upside follow through before another swan dive into last week’s low. Time will tell whether this bounce proves different or similar, but it certainly resembles the previous bounce attempt. For now, support has held and there’s room to rally.
The major averages (and many individual stocks) are still caught in wide trading ranges with ample room to spare on both sides before either boundary would be threatened. Volatility is still elevated (VIX 21), so we can likely expect more gappy price action with wide-ranging bars in the short term. It’s the lack of a clear trend right now that’s the biggest issue, though, so abbreviating holding times for new positions is still the best way to combat the choppy tape we find ourselves in.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
