Good evening StockBandits!
The indexes held steady again today with mixed and minor net changes, which is something we’ve seen quite often of late. Momentum was absent once the weak open was digested and stocks lifted from their initial lows, presumably ahead of tonight’s State of the Union address, key earnings reports after the bell, and of course tomorrow’s FOMC meeting.
A few big Tuesday morning gaps have been sprinkled into the mix in January, but apparently stocks will get that tomorrow morning with the big spike in the futures on the heels of AAPL earnings after the bell. That may set the early tone tomorrow, but as always, it’s how that gap gets treated which will really matter.
There are a ton of stocks with bullish patterns tonight in the charts, and you can see below on my watch lists just how lopsided it is in favor of the bulls. That has me slightly concerned that we’re reaching a crescendo, as that typically indicates that most all stocks are participating and therefore it’s about time for a breather. That’s no prediction, simply an observation from the past few months. At any rate, we do look poised for a gap higher tomorrow, so we’ll just have to see if it invites some profit-taking or if instead it’s able to hold.
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: RYL, LNKD, CLF, TRIP, HGSI
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.
Thanks Jeff for the interesting video.
I think the tide turned a bit up here in Canada today ($TSX)
I got out of the long swings in the middle of the afternoon and bought some bearish ETFs. I feel more relaxed since I did that. We gapped down and stayed down this morning. There are very few bullish Canadian setups this evening. Everything seems to have gone down…even the good charts from yesterday went down.
Jeff,
Have really been enjoying your video recaps. Quick question, how long do you suggest following your picks? I had a nice trade with LIFE today which you suggested a few days back and it happened to still be in my watchlist. 🙂
Am very curious to see what tomorrow brings in response to AAPL’s surge on earnings.
Hey Pamela!
Thanks for the feedback on the video recaps, I appreciate it. To answer you though, this is a really good question (how long to follow the setups). I’d say as long as the pattern is valid, it’s still a setup worth considering. My own go-to list may vary from one day to the next, but normally a stock that still acts well will still be on the Bullish Watch, for example, so it’s still worth keeping tabs on in case it goes. Congrats on the LIFE trade, excellent work!
My aim here is to share my plan with you, put some stocks on your radar, and hopefully empower you to grab more moves like that on your own. Nice job and keep it up – and thanks for sharing it here as well!
Re above:
Changed my mind again…..Tricky business!
I’m beginning to think the market is as fickle as I am.
It’s playing tag with me.
Changing our minds is the freedom we get as traders as opposed to investors! So long as it’s not emotions and confusion causing it and you’re taking cues to adjust your stance from the market, that’s perfectly alright.
Thanks.
That’s helpful
Jeff,
Finally….and cautiously. I think I am getting somewhere. My account has broken out of a head and shoulders bottom today. I did your combo university course over the Christmas break and read quite a few books before that. I started “practising trading” at the beginning of the year. It’s been very frustrating.
Thanks very much for your help along the way and for putting up with me patiently. I have really appreciated the opportunity of bouncing things of someone with experience. You seem to be very patient and also an excellent teacher and guide.
You have probably thought of it, but I think you should put all those articles together and publish them, just as they are, without any messing around. “Essays from the Stock Bandit.” I would be one of the first to buy a book. It would save me scrounging around the web site finding them all, and I don’t like reading off a computer really. I do look for them and read them however. It’s the abstract nature of the articles that I really like because that approach gives me the tools and skills to deal with any situation that comes along, and also to develop any style that I wish.
Thanks
Hey Mark,
Glad to hear you’re feeling the progress being made, that’s a huge boost for any developing trader. Congrats! It’s a process and it will continue, but I know how satisfying that can be to put in the work and finally start seeing the results.
Thank you for all the kind words and I’m glad my attempts to assist have been helpful. Hang in there!