Good evening StockBandits!
The opening bell this morning arrived with a soft open as stocks gapped slightly lower to start the week. New lows were made shortly after for the day, but the downside never really gained momentum. Instead, stocks stabilized and grinded their way higher for the rest of the day, leaving the NAZ in positive territory and the S&P and DJIA only down slightly for the session.
Dip buyers are still present, and why wouldn’t they be? The overall trends remain up, we’ve respected former key resistance levels as support when tested, and every dip since August has been bought. So while strength is still present, we’re still sitting in a holding pattern here in the short term. That equates to rest for the market, which is healthy, but it means we must continue to be selective with new plays until more widespread momentum returns – one way or the other.
Tonight I’m seeing quite a few stocks which are in the midst of consolidations, as evidenced in the bullish watch list at the bottom of the newsletter. However, the problem is that the market itself isn’t gaining momentum, and neither are many of these stocks. I like to see a strong close which challenges resistance (or a trend line), along with a positive net change and an increase in volume, if possible, to signal an impending breakout. Few stocks are exhibiting that behavior tonight, so I’ll be keeping an abbreviated trading timeframe once again heading into Tuesday’s session, as well as a narrow list of names to focus on. As more setups emerge which look ready for moves, including swing trades, I’ll certainly have them here.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: CVH, APC, DIS, ENTR
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
LBTYA, KEM, NTAP, ANR, AMTD, LEAP, SRZ, TQNT, APA, CBS, MGA, SINA, CVH, NCR, SPRD, PCX, DIS, NAK, JCI, CNX, ENTR, MMR, ETFC, BYD, ACOM, APC, MHR, AXTI, NFLX, RVBD, MEE, VSH
Bearish Watch:
MCD, WDC, SNI, BVN, AEM
The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
