Good evening StockBandits!
The market ramped higher out of the gate today, opening flat but seeing a big spurt of buying to kick off the new week. The strength was short-lived, however, as we saw the opening move completely reversed with a move into negative territory across the board. That gave the market an opportunity to pull back deeper, but didn’t do it. Instead, the dip-buyers stepped in once again to leave the indexes mixed and little-changed on the day.
Despite having cleared some very important levels of late, the market remains short-term extended. Today we saw stocks correct in terms of time rather than price, and that may be how it is for a little while. The buyers have been paid to put cash to work on dips for some time now, so it’s no wonder they’re sticking with what has worked so well for them. We may see this market simply rest rather than retreat, so we’ll need to prepare for that possibility as well.
There are some setups on both sides of the tape which interest me, but with the indexes reaching new highs today and then backing off a bit, I’m looking to stick primarily with abbreviated timeframes on new trades rather than adding a lot of directional exposure. I’ve been eager to see a pullback or a rest, and one day isn’t enough, but today may have been a start – we’ll just have to see.
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: X, CTSH, AGP, ANF, BHI, PTEN, FCX
Swing Trading Candidates:
FCX cleared the upper end of a large triangle recently and has since worked higher and then rested. Here it sits in a small pennant, so I’m watching for a breakout to trigger an entry at $44.25 to suggest the next move is getting underway. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
