Good evening StockBandits!
Stocks gapped slightly higher this morning to continue Wednesday’s strength, taking each of the indexes to new recovery highs. More importantly, some space was added from the important levels crossed yesterday to current prices, which gives the bulls a little more breathing room in the near term should they happen to take a rest.
Speaking of a rest, that would actually be a very healthy development for this market after this run of 5 weeks without any more than single-day pullbacks for the NAZ. During that time, it has run over 10% higher, clearing not only the October high but also accelerating out the top end of the uptrend channel as of yesterday.
Although a big chunk of the January gains have come by way of Tuesday gaps (3 times), the fact remains that it takes impressive strength to clear uptrend channels to the top side. This is not a sustainable pace, which is one reason why I’ve been quick to raise stops on swing positions lately.
There is no need to call for a short-term pullback, as the likelihood of seeing one soon is becoming increasingly high. It may not be a deep one, as the market can simply correct by moving sideways, but we will see moves in both directions so we can’t ignore the need to manage risk after such a lengthy run.
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: LIFE, VAR, TRIP, XEC, SWN
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.
