Good evening StockBandits!
The indexes saw upside gaps this morning as the futures exhibited early strength on the heels of yesterday’s lackluster action. However, additional strength never materialized as each of the averages ultimately saw gap fills and a return to positive territory by the closing bell without eclipsing the morning highs.
We’ve seen plenty of choppy sessions of late, and today’s can certainly be added to the list. The overall market continues to sit in a bullish holding pattern here, resting near highs without giving up any ground or gaining any momentum. As a result, I’ve done very little in recent days, opting instead to sit on my hands and wait for better opportunities to surface than the occasional quick-flip trades. So far, I don’t regret it.
Some are pointing to the pervasive bullishness and the slowed pace of the advance as a reason for caution here. There are always reasons for caution that we should each respect, but typically when sentiment gets out of hand is when the moves become too sharp too fast, and thus become ripe for a reversal. The technical situation we currently find ourselves in could of course deteriorate, but so far we have no evidence in the price action of that happening. As such, the bulls remain in the driver’s seat for another day and I have no intention of embracing the bearish side until there are technical reasons for doing so. Once we have that, I’ll certainly be willing to shift directions. Let’s see what tomorrow brings.
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: KEM, MCK, VHC, WDC, GES
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
LBTYA, KEM, NTAP, ANR, SRZ, APA, CVH, MNTA, ACOM, APC, NXPI, MHR, FR, FTK, MCK, ULTA, BSFT, DFS, MU, ABV, AGU, IDCC, HUM, SLAB, VHC, MIPS
Bearish Watch:
MCD, WDC, BVN, TGT, HMIN, ORLY, GES, RCII, VFC, ANF, LO
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.
