Good evening StockBandits!
Profit-taking hit the market hard today as the NAZ 100 chalked up an outside reversal bar while the other indexes gave up ground as well. The intraday action was characterized by steady selling, and although we’ve seen bigger declines take place, today’s was a relentless retreat. The dip-buyers who have been ever-present in recent weeks were nowhere to be found today, and stocks never staged an attempt to bounce. For the day, the small-caps led the way down with the RUT giving up 2.5%, followed by the NAZ (-1.4%) and then the S&P (-1%).
Today’s slide did some short-term technical damage to quite a few charts of individual stocks, simply because it was a change of character from the slow-grind advances we’ve seen so many of lately. Today’s bar on the charts negated quite a few bullish patterns which had been building, which gives the impression that more time will be needed before stocks are ready to resume the rally.
What I’ll be watching closest in the days to come is how the market and how individual leadership stocks respond to today’s slip. If we see more selling kick in, it could be that we’ve seen the highs for a little while. If instead the buyers are willing to step back in and provide support, then this could simply be the start of a basing period while the market digests the recent run and traders contemplate a challenge of resistance levels up above.
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: NXY, UTX, GES, DECK
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
FDO, NXY, ACOM, BORN, FOE, ATML, ATW, CAT, ARMH, COV, AMAT, MDRX, UTX, GDP, CHK
Bearish Watch:
SNI, AEM, GES, RCII, PVA, ANF, PVH, KSS, GG, AZO, TIF, DECK, MSCI, DRQ
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.
