Good evening StockBandits!
The 20-Tuesday streak of wins for the DJIA was broken today, surprising some who thought the senior index might never go red again on the second day of the week. Across the board, we saw .5% declines or worse, although that was after a decent late-day bounce off the session lows. A positive morning saw a shift of direction after a mid-day lower high, and once the early gains evaporated, stocks slipped further as cash got raised.
Tonight on the daily charts, we have the S&P 500 back beneath its range, while the NAZ and RUT have simply retreated within their respective ranges. These changes of direction we keep seeing not only intraday but also from day to day are par for the course when caught in trading ranges. The lack of follow through is expected until we see unanimous breaks one way or the other, which keeps us on our toes while new bases build.
I’m not adding any new swings tonight as we are still caught in trading ranges and the increased volatility of the past few days for the most part has simply left wide trading ranges. This means wider stops on swing trades in many cases, as well as limited follow through over the past couple of weeks. I’m staying patient and will add new positions as high-quality bases come along.
Let’s get to the charts.
NAZ – The NAZ gave up 20 today but held inside its trading range for now. A break below the 3422 level again could deliver a swift decline back down to test or fill the gap from early May.
SP500 – The S&P gave up 9 on the session and now has about 2% of room before next support is found. That’s at the primary uptrend line which coincides with former resistance at 1597.
RUT – The RUT gave up almost 1% today but remains almost 12 points above trading range support for now. A break of 970 would bring next support at 954. Note the alternating colors in recent days with no follow through.
Notable Names:
AAPL is nearing a resolution to this wedge, which has gotten very tight. This could set the tone for many other tech stocks once it picks a direction.
TSLA is trying to rest a bit here, which is well-deserved and needed. I’m watching for a possible trend line formation which needs a bit more validation.
GOOG is still pulling back but doing so on light downside volume, indicating this descending channel could get resolved higher once it’s completed. Currently price isn’t pressuring the upper end, so there’s no indication it’s ready to turn higher just yet.
WLT is holding above support and a break of the descending trend line could spark a quick rally for shares as value players pile in and shorts get squeezed. A swing stop is still a bit too far to consider just yet, but with each day this compression pattern gets tighter, so it’s just a momentum candidate if it goes Wednesday.
OSTK is facing a potential breakout from a wide base. I like this one for a momentum play only if it can clear $27.60.
CAB is just beneath a trend line after moving laterally for about 8 sessions following a minor pullback. A momentum play may be worth a shot above $68.50 but the prior high isn’t far away so I’m not thrilled with the risk/reward for now as a swing.
WTI is wedging here and another day would reduce the swing risk further by tightening this base just a bit more. For now, it’s a momentum setup for me with a $15.40 trigger price.
FMX is near the lower end of this wedge, which needs more development. A break below rising support at $105.50 sets up a momentum short with next support around $102.50 (prior resistance from January).
ALK is still looking good here after being listed in last night’s Blueprint. The base is starting to take shape but needs to tighten further before I’ll consider a swing. For now, it’s a momentum setup for a short below $55.
New Swing Trade Candidates:
No new swing candidates tonight.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
