Good evening StockBandits!
A positive start saw limited follow through this morning as the opening gap was built upon then quickly filled. The mid-morning change of direction lasted for the remainder of the day, however, as the indexes each worked their way into negative territory by the close.
Today’s turnaround wasn’t a big one, but it might have been an important one. For weeks, we’ve seen the indexes grind higher as bulls eagerly buy every dip while bears quickly cover on any signs of weakness. That persistent buying has produced a sizeable rise over the past six weeks, but without any meaningful rest. Anytime the market starts to become too predictable, it’s time to start watching for signs of a shift, and today’s reach to new highs only to reverse negative may have been an indication that fatigue has finally set in.
Keep in mind that a short-term pullback is what this market needs, so this isn’t a call for a complete change of trend. We have a few levels on the downside which could serve as support zones, IF we see follow through selling. IF is a big word for just 2 letters, so the biggest takeaway from today’s action is simply to proceed with caution in case this run is starting to lose some steam. Time will tell, but I’m back to cash heading into Friday’s session with an eye on a few short candidates as day trades.
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: LNKD, CTRP, SHLD, JAZZ, HMSY, ALXN, PTEN, XEC, CRM, PLCE
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.
