Good evening StockBandits!
The net changes in the averages today appeared mundane, but there was a little bit of excitement early in the session. A modestly positive open was immediately met with aggressive selling for the first 40 minutes of the session, without relent. It was solid red and looked as though it could turn into one very nasty day for the bulls. However, they showed up – just a little bit tardy.
The low of the day was set in the first 45 minutes, and from there stocks staged comebacks of varying degrees. For the S&P 500 and DJIA, the recent leaders, positive ground was seen and held. The NAZ and RUT didn’t fare quite as well though, as each was unable to fully erase the morning deficit, ultimately finishing slightly in the red for the day.
The DJIA was even able to make a new all-time high today, although only by a small amount, which wasn’t the earth-shaking type of move the bulls would have preferred. We saw a close just 8 points above the former high, and that came on weak volume. Incremental new highs don’t often prove inspirational, but the bulls have earned the benefit of the doubt in the blue chip averages of late so it’s something we’ll need to keep an eye on.
My watchlists are again very thin, which leaves only a handful of trade candidates for me tonight. Over the years as a trader, I’ve encountered this on many occasions and have handled it a few ways. The occasions where I lowered my standards for the sake of finding activity proved costly. The occasions where I cut back on my trading proved boring – I won’t lie – but kept me objective and left me able to maneuver better once the action heated up.
Let’s get to the charts.
NAZ – The NAZ pulled back only a few points today after being down about 35 early in the session. There remains an unfilled gap down to 4185, but a push through last week’s high at 4252 could set off a move back up toward 4286. For now, it’s still on hold.
SP500 – The S&P saw its 9th rally in 11 sessions with a modest 1.4-point lift to make a new all-time high. Volume was light once again, as apparently the bulls are too greedy to sell yet but few seem interested in chasing this move before some kind of a dip or some rest is seen.
RUT – The RUT pulled back today to fill the gap to 1126, staying beneath the 1137 level it twice attempted to clear last week. This keeps it in the wide, low-level range well above 1079 long-term support but beneath resistance levels at 1137 and 1160.
DJIA – The DJIA made a new all-time high today, but not in style. Tonight’s close was only 8 points above the prior high of 16735, and today’s volume was very light. Given that this index has been up in 9 of the last 11 sessions, the enthusiasm seems to be dissipating but it has yet to pull back.
Notable Names:
CTRP is sitting in a wide trading range of the past few months but could see a breakout any day now. Today price lifted to bring it within reach of key resistance, so I like this one for a single-day play on the long side if it can make a new recovery high at $57.05.
EXPE is another name in the travel industry which is facing resistance here. A breakout from this low-level range would occur at $74.55 and it would have some room to run toward the April high if so. I like it for a single-day play on the long side if price can clear the hurdle on Tuesday.
VRTX is at resistance here after a quiet recovery effort off the April lows. A push through $73.60 looks good to me for a single-day play on the long side as price starts a new leg higher. This one hasn’t been running with lasting momentum, so I’m only interested in grabbing the initial move of a breakout.
ABX is already trending lower but has bounced within the trend. A downside break of the small trend line at $15.75 could spark more selling, so I’ll grab it for a single-day play on Tuesday on the short side if that break occurs.
SALE has bounced and stalled out here and any turn lower could easily trigger a wave of selling. I like this one for a single-day play on the short side upon a break below $24.75 with room to tumble back toward the May low.
New Swing Trade Candidates:
No new swing candidates tonight.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
