Good evening StockBandits!
Happy New Year to you all, and it’s nice to be back in the swing of things! I hope your holidays were as good as mine, and it was good to spend time with family and have some down time in preparation for 2012.
Looking back, last year had a little of everything – and yet the net result was no progress. The S&P 500 finished unchanged for 2011, ending right at the same level it finished at in 2010 – 1257. That’s pretty funny considering all the volatility and reversals we saw, but it just reminds us that buy and hold isn’t a working strategy these days, and it’s very much a trader’s market.
We still have a somewhat range-bound market right now, but as we get free from the light-volume holiday trading and get the new year underway, I’m expecting to see more setups emerge. Initially, I’ll be looking to stay selective for the most part, and don’t mind hedging via a long/short strategy until we see this market pick a direction. Once momentum starts to emerge, a directional bias will be more appropriate.
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: FTI, TCK, GMCR, VRTX, JOY, CRM, COH
Swing Trading Candidates:
VRTX turned higher a few weeks ago and has been acting well, showing strong volume on the upside and quiet volume as price retreats. Here the stock is sitting in a channel, which if resolved to the upside, could kick off another leg higher. I’ll be going long for a swing trade if this channel is crossed at the upper trend line with a push through $33.55. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
JOY rolled over hard a few weeks ago and has since been unable to bounce. Here it’s in a bear pennant or wedge pattern, and a downside resolution would happen with a break of the lower trend line. I’ll go short if this one undercuts $74, as there’s still plenty of room to head lower. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
CRM sold off hard from its last bounce attempt, and here it sits in a small counter-trend channel. These kinds of patterns are generally resolved in the direction of the trend, which is down, so I’m watching for a short entry if this one undercuts $100.00. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
COH has been caught in this channel for many weeks, and here it has a shot at moving lower within the channel once again. I’ll stop out if it breaks out to the upside after triggering an entry, but otherwise I’m looking to get short if it makes a multi-day low with a break below $60.70. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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.
