Good evening StockBandits!
A huge agenda today offered the market a number of things to focus on, from earnings reports to the FOMC to breaking news from tech leader AAPL, and of course tonight’s State of the Union address from the President. That set the stage for plenty of knee-jerk reactions, and we could see more tomorrow as the market digests it all.
At the end of the day though, the market is still waiting for the bulls to produce some meaningful upside on the heels of the recent decline. The market tends to move its own way and then find news to support it, and lately the sellers have dominated. Even with all of today’s catalysts, the upside was modest in comparison to the slide of last week. That isn’t to say we won’t see a continued bounce, but the longer we see the indexes rest after such a sizeable selloff and the slower the bulls are to act on depressed prices, the possibility is raised that we’ll see a continuation move to the downside.
Tonight there are quite a few bearish charts setting up due to the price action of the past several sessions. The harsh decline and quiet rest phase we’ve seen since then is building bear flags, pennants, and wedges in many places. Not all of them are ready to go, but the hesitation we’ve seen on the part of the bulls certainly opens the door for another wave of selling to arrive – unless they build aggressively on today’s minor bounce. Therefore, caution is still warranted on the long side, particularly until better momentum surfaces. I’m watching for weak bounces in individual stocks, both in terms of price and volume, but waiting to see if this market can rebound further before looking to press the short side.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: MMR, ILMN, AMED, PFCB, M, SPN, PWRD
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MAPP, MMR, ILMN, MNTA, IT, AMED, PFCB
Bearish Watch:
CSIQ, TSL, SLG, GLD, AXP, BBY, TIF, MA, OII, OSG, SPN, PWRD
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
