Good evening StockBandits!
I want to start out by saying that if you have in the past served or are currently serving the U.S. via the armed forces, Thank You! I truly appreciate the untold sacrifices made by the few for the benefit of freedom for the many.
Turning to the market, the most exciting part of today’s session was the first 100 minutes as stocks zig-zagged across the flat line without ever committing to a direction. After that, the market settled into a very tight range, with the NAZ spending the final 4+ hours in an 8-point trading range. That made for some very dull trading and a choppy session where it was very easy to try too hard (overtrade). In the end, we saw very minor net changes to the upside but no meaningful headway for the bulls. Quotes seemed so stagnant this afternoon, I repeatedly looked to be sure my platform was still connected!
My watchlists remain quite limited this evening, as the shake-and-bake move last Thursday and Friday kept many charts sloppy and otherwise the lateral price action we’ve seen has brought about only isolated momentum in select names. This sideways movement is allowing some bigger-picture bases to form, but with index prices still centered within their respective trading ranges, there aren’t a lot of stocks looking like they’re raring to go tonight.
I’m staying selective with new swing trades (CSX still hasn’t yet triggered but is close), and otherwise looking to just take what the market’s offering by way of some single-day plays for now. That’s not how I’d prefer, but it is what it is and there have certainly been some good cashflow opportunities of late for us which is helping out while waiting for more multi-day plays to set up.
Let’s get to the charts.
NAZ – The NAZ saw light volume and a very narrow range today which looked even smaller due to the large moves of the previous two sessions. Tonight it’s still inside its range and not pressuring a move either way yet. Technically, the diminishing volume we’re seeing on the bounce could set up another short term lower high if the bulls don’t stay in gear.
SP500 – The S&P stayed within a narrow trading range of just 6 points today, closing less than 4 points from new-high territory. That opens the door for the bulls if they want to produce a breakout, but they didn’t seem eager to do so today with a 1 point advance.
RUT – The RUT also gained just 1 point today, giving it the appearance of follow through to Friday’s strength without any meaningful headway being made. This index also has potential to carve out another short-term lower high, so we’ll see if the bulls can continue to produce strength or if instead today’s narrow range was a bit of fatigue setting in.
DJIA – The DJIA finished just a few points from its all-time high from last Thursday after a small 21 point gain on very light volume. This index has had a recent history of making new incremental highs/lows before reversing in the past several months, so the bulls have a chance to break the mold here with some continued strength. Can they do it?
Notable Names:
P is on my radar here as it works on this ascending triangle pattern. I’d prefer to see this base tighten or for price to edge closer to upper resistance before setting up a breakout play.
CTRP is also on my radar but I’d like to see price stall out in this area a bit longer before setting up a play. This stock looks poised for bearish follow through in the days ahead after the break of rising support last week.
CLF just pulled back but held above prior resistance. A turn up through the small trend line at $27.70 could set up a quick lift back toward the recent high, so I’ll take it for a single-day play above that level if it’s cleared on Tuesday. Upside volume the last 2 sessions wasn’t very impressive, so I have no interest in taking this one as an overnight at this point.
LVS is turning higher within its descending channel but upside volume has diminished in the last two sessions. For that reason, I’m only interested in a single-day play above the upper channel line for Tuesday, which would be a break above $71.05.
LOCK was listed here last night for a single-day play in today’s session but it did not trigger an entry. The same setup is intact, and in fact I like it a bit more tonight after the shake-out type bar it painted today with a new multi-day low and finish near the high. A turn up through $16.10 on Tuesday and I like it for a single-day play back toward the recent high for a test.
YELP is working on a head and shoulders pattern here that could deliver quite a bit more downside. I’d like to see it base a bit more before it breaks down, but if price undercuts $60.20 on Tuesday I’ll just take it for a single-day play to participate in the initial breakdown. I’d like to see it base a bit more to establish some multi-day resistance I could use for a stop on a swing, but that’s not there yet.
SODA is starting to stall out here on the bounce so I’m looking at it for a single-day play on the short side for Tuesday if it breaks rising support at $55.30.
New Swing Trade Candidates:
No new swing candidates added tonight, sticking with the current plays heading into Tuesday.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
