Happy New Year StockBandits!
It’s great to be back at full speed, and I hope the holidays were a wonderful time for you. I was able to spend some nice time with family, including getting to experience an actual blizzard in Oklahoma, and the break from the markets was a healthy one. Hopefully you were able to spend some time focusing on other things and put together some plans for how you want to approach 2010. I’ll have a specific New Year’s post coming this week in which I’ll be addressing some goals here at the site, so be on watch for that in the days ahead.
While we were away, the indexes were able to climb higher to hit new highs on the year, although they slipped slightly on the final day to finish a short distance from their best levels of 2009. Thanks to the March – December rally, the indexes were each able to post solid gains on the year, and those uptrends are still very much intact.
Here at the site, our swing trades were net profitable again in December to cap off 6 consecutive months of gains (July, August, September, October, November, December). Consistency is of course the aim here, so it has been nice to find that for the past 6 months. Hopefully we can tack on many more going forward. I’m sure glad you’re a member here and that you’re seeing the value of membership. We’ve seen more conversions from monthly memberships to the annual plan lately, and for good reason.
As we head not only into a brand new week of trading tomorrow but also as the New Year gets underway, I just want to remind myself and you that great trading does not require bold or outlandish action. It does not require the ability to predict future movements or forecast why or when the market will be on the move. Rather, it DOES boil down to patience in finding plays and letting them develop, as well as discipline with cutting losses and sticking to a game plan. That’s what I’ll be doing in the months ahead, because I know from a dozen years of trading that over time that method works very well. That gives me confidence that 2010 can be yet another year for account growth. And while I’d like to get off to a great start this year, the pressure of doing so is removed based upon that confidence.
Just as the end of the year holds some unusual cross-currents, the very beginning can as well. In years past, we’ve seen big moves take place early in the year, so it’s important that we are ready for that in case it happens again. Hunting for the best setups in the charts is what will guide us in the right direction, so there is no substitute for doing our homework.
In tonight’s video, I’ll be of course discussing the overall market and several setups of interest heading into tomorrow.
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: IOC, LUV, NEP, NEM, LEAP, FMCN, FLS, WYNN
Swing Trading Candidates:
LEAP has pulled back slightly in recent days but in a shallow fashion, indicating it is simply seeing a rest on the part of buyers rather than true distribution (selling). A push back above the trend line at $17.85 should put this one back on the move, and I’ll be a buyer if that occurs.
FMCN broke out through its prior high in December on heavy volume, and has pulled back gradually to test that former resistance level. At the same time, a small trend line has emerged just overhead, and a push through it would indicate this stock is getting back on the move. I’ll be a buyer if this one clears that trend line at $16.20.
FLS is in the midst of a downtrend which started in November, and is threatening to not only make a lower low here but also break key support. I’ll look to short sell this stock if it undercuts the $93.90 level.
WYNN is sliding lower and currently is sitting just above short-term support. A break of that support at $58.00 would leave plenty of room for more selling to kick in as the stock heads back down toward former support. I’ll short sell this stock if and when it breaks $58.00.
Bullish Watch:
FMCN, RDN, IOC, UAUA, LUV, LEAP, ANV, FBR, NEP, APL, WTI
Bearish Watch:
FLS, WYNN, OSK, BBY, FSYS, NEM, CAT, POT, ESV, HON, VAR
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.
