Good evening StockBandits!
The lackluster price action we’ve seen so much of lately continued today as the indexes finished the session little-changed with mixed results. The DJIA shed a few points while the other averages gained a little ground, but overall nothing significant took place as stocks largely stayed within narrow trading ranges.
The bulls have retained the upper hand, despite the lack of overall follow through. We’ve seen important chart levels get tested or approached in each of the indexes over the past two weeks, and despite solid 3-week gains we’ve yet to have any real profit-taking. Time will tell whether that ultimately follows an acceleration move higher or not, but for the moment the action is quiet but positive.
My watch lists are becoming heavily slanted to the bullish side, and the last few times that has happened we did see quick pullbacks set in. I’m eyeing some long-sided candidates for tomorrow’s session, however, as that’s where the setups are. Should the market weaken, appropriate risk management (and/or a lack of triggers for new entries) should protect me, so I’ll take it as it comes.
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!
Video Stocks Discussed: CP, DPZ, PFCB, ATI, TZOO, POT, MOS, ANR, HFC
Swing Trading Candidates:
HFC turned up from support a couple of weeks ago and has done a very nice job of digesting those gains with a few days of rest. This bullish consolidation now looks set for some upside continuation, so I’m watching for a trend line break to occur at $26.60 to trigger a buy. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
Is TNA ready to break out.Looks very close.
Welcome Robert, glad you are here!
I agree, TNA does look close. With it being a 3x levered ETF, exact levels are not easy to determine on its chart. For example, we are clearing multi-week resistance here, but still have the late-Aug high (51.59) and the best close on 10/27 (52.37) to contend with as overhead levels.
Rather than defer to the TNA chart, what I would do is base it on RUT 772 since it’s just a levered tracking ETF for that index. That 772 has been a major area over the past year and change (go back to late-Dec 2010). It held as support in Jan, Mar, Jun, then became resistance in Oct. We’re creeping up on it here, so a punch through could bring an acceleration higher. If that happens, then TNA would be the fastest vehicle.
Hope this helps!