Good evening StockBandits!
The market finally relented on Friday with some mild selling, snapping a 6-session winning streak for the NAZ. The dip was kept relatively shallow, however, and even it found some buyers. A gap lower resulted in more selling for the first hour, but by then the lows of the day were in and stocks lifted modestly for the remainder of the session. By the closing bell, the market hadn’t given up much ground at all.
Friday’s price action reminded us yet again that the buyers remain present, and that the short side just isn’t paying off at the moment. We’ve now pushed higher for 4 weeks without a meaningful pullback, which has brought forth a well-defined narrow uptrend channel on the NAZ. The lower trend line was tested Friday and held, although the S&P continues to deal with the all-important 1294 level which it faced numerous times during 2011.
I mentioned last week on Wednesday and Thursday nights that my watch lists were becoming heavily slanted to the bullish side, and that the last few times that has happened we did see quick pullbacks set in. Again that proved helpful for exercising caution into Friday’s pullback, although we’ll have to see in the days ahead whether we see any downside follow through. The bulls continue to maintain the upper hand in this market, although we’ve yet to see a real acceleration move higher.
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: HOS, MOS, FLS, ELN, ESI, RHT
Swing Trading Candidates:
NONE TONIGHT
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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.
