Good evening StockBandits!
Wednesday’s decline saw only limited follow through today as each of the indexes finished in the red, but well off their session lows. Morning weakness eventually found buyers (or shorts willing to cover), which marked a low ahead of mid-day. From there, we saw a gradual recovery into the afternoon, although there seemed to be no real urgency from the bulls to really push stocks higher. In the end, the blue-chip indexes finished essentially flat while the NAZ and RUT each gave up some ground.
Tomorrow is option expiration day, which is to say there will be some additional motives causing some of the moves we’ll see due to the impact options have on equities. Toss into the mix the fact that we’ve not seen much follow through this week in either direction, and the stage is set for more messy price action. In sifting through hundreds of charts tonight, I saw many names which will now need to rebuild their bases before they’ll be poised for moves, whether up or down. Bullish setups have been obliterated in some cases, while other stocks now appear somewhat stretched to the downside and could stand to rebound in the near term.
Today I got checked out of my swing short in RCII (see the Hit List for more details there), so even in a short-term pullback it’s proving to be a messy tape right now. That may be the by-product of it being an expiration week combined with numerous earnings reports, but the point of all of this is that we have plenty of reason here grounds for shortening timeframes as a way to reduce risk. In a market that’s so reluctant to produce follow through anyway, that’s the best way to participate in some of the moves without overstaying our welcome.
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: CNX, MCP, UTX, PVH, INFY
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
LBTYA, CNX, MCP, MGIC, HANS, CVD, SRX, NXY, FDO, UTX, CHK, WBS, REN, PNK, PWE
Bearish Watch:
SNI, PVH, DECK, CNQ, APD, INFY, CMI
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.
