Good evening StockBandits!
Last night’s news out of AAPL left tech stocks buoyant this morning as the NAZ held its ground after a small gap higher in the early going. Meanwhile, the other indexes slipped out of the gate with uninspired price action and some mild-profit after last night’s State of the Union address.
But even with all that news, there was still more to come with the FOMC announcement which really served to produce some afternoon strength. Traders put cash to work with peace of mind that the Fed is ready to assist in the event of a downturn in the economy with further easing measures, although it stopped short of outlining any specifics. Given the rally which QE2 produced, as well as the persistent upside in the market in recent weeks, it’s no surprise stocks lifted on that news.
We still have a slew of earnings reports to sift through, but the big scheduled news for the overall market has now passed for the time being. As we let the dust settle, it’s important to consider the conditions we’re in. The indexes are long overdue for a pullback, but one has yet to arrive. That means the long side remains the side to trade on, although added emphasis must be placed on risk management at this point. We’ll see some profit-taking kick in at some point, but for now there are still opportunities for some short-term continuation.
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: MHK, ALXN, CPX, HOS, CELG
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.
