Good evening StockBandits!
Hope you’ve enjoyed the extended weekend and you’re ready for a brand new week of trading. Even though it’ll be a holiday-shortened week, it’s sure to be an interesting one as we see more earnings reports roll in, along with plenty of econ news. By the way, be sure to keep a close eye on the earnings calendar to avoid any surprises.
Last week we saw the indexes stretch to new highs on Friday, capping off a quiet but strong week yet again. The pace of the advance continues to be gradual, but relentless, as the bulls have maintained control of this tape since the start of September. Some are calling it overbought, but the current pace hasn’t left the indexes too stretched in the near term, so there’s still room to rally further if the buyers stay assertive. A rest wouldn’t be a bad thing, however, as uptrends need pullbacks along the way in order to persist over time.
We could see a weak start on Tuesday with AAPL grabbing the spotlight even ahead of earnings Tuesday afternoon with the news of Steve Jobs taking another medical leave. That stock has been a tremendous leader, and given its presence in the Nasdaq and S&P 500, weakness there tomorrow morning could set the early tone. Nonetheless, it will be how the market responds which will ultimately make the difference, so we’ll have to stay on our toes out there and keep an open mind.
There are still many stocks setting up for new plays, which should make for a nice trading environment in the weeks to come. My aim is to let the patterns mature before listing them here, and even then to only take trades which are crossing important levels to indicate they’re back on the move. Keeping tight stops remains important, as does watching out for scheduled news (econ. data & earnings primarily). So long as we’re doing that, opportunities will continue to surface.
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: ATML, WYNN, HANS, ANF, OPEN, RCII
Swing Trading Candidates:
OPEN cleared resistance two weeks ago with heavy volume on the breakout, and has since pulled back to hold the breakout zone on quiet volume. This one may be gearing up for another run, so I’m watching for a breakout from this tight consolidation which would occur when the upper trend line is cleared at $80.85. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
RCII currently resides in a rising channel, which is a pattern that’s typically resolved to the downside. Given that this stock appears to be undergoing a trend change since failing at resistance a few weeks ago, I’m looking to get short if this one falls below the rising channel with a break below $30.00. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
Bullish Watch:
SPMD, ETFC, BYD, MTW, ULTA, ATPG, ADSK, AGU, MGM, APKT, VSH, BEAV, PHM, NFLX, OPEN, KSU, ARUN, XXIA, OEH, RAX, ATML, MELI, WYNN, MAS, CAVM, USG, HANS, HLS
Bearish Watch:
SNI, BVN, AEM, HMIN, AAP, RCII, ANF, MASI
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.
