Good evening StockBandits!
The New Year began today for the market with a big gap to the upside and some additional strength which followed. And although the market slipped from its best levels by the closing bell, the bulls still made meaningful strides today with a push to new highs across the board. The intraday ranges expanded a bit, and volume jumped considerably, which was very nice to see. That points to much higher overall participation, which should make for a better trading environment than what we’ve seen in the last two weeks.
The indexes continue to exhibit strength, and while it is just the first week of January (and thus, anything is possible), it’s a solid start for the year. We have room to move higher in each of the averages, and if today’s action was any indication, the bulls may be intent on producing those moves. Earnings season won’t begin in earnest for a little while longer, which means the focus for a little while is likely to stay on the price action and the economy, both of which have promoted plenty of upside in recent months.
As a result of the return of volume and volatility today, more setups are present tonight and that spells opportunity for tomorrow’s session. Many stocks moved big today and may need a rest, but there are also plenty of stocks which could play catch up in the days to come. I’ll get to several momentarily when we get to the video.
One final note I want to make here is one of encouragement. Anytime the market jumps right out of the gate with a gap like we saw today, you either have to chase strength or be long overnight in front of it. And as a result, tonight you might be feeling some discouragement if you feel you lagged today. Let me say this: don’t! The year is long, and while we may all be a bit impatient and don’t enjoy waiting for more opportunities, the fact is that they will come. There will be many days this year where you outperform drastically, and you need to trust that. Great trading is about catching some moves, yes, but it’s also about avoiding mistakes. If you go out tomorrow trying to make up for perceived lost opportunity today, that’s a mistake, so avoid doing that. Take the setups you know, manage them accordingly, and remember that trading is a marathon and not a sprint. Do your best each day, but take a long-haul approach and believe that your method over time will produce for you. That’s what it’s all about.
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!
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Video Stocks Discussed: SINA, CBL, CCME, AEM, BVN, KKR, ATML
Swing Trading Candidates:
KKR cleared resistance two weeks ago and pulled back, holding well above the breakout zone. This one may be getting ready for another leg up, so I’m watching for a push through the trend line at $14.60 to trigger a buy. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
ATML is currently resting within an uptrend, but may be gearing up for another push higher if today’s advance within the base is any indication. I’m watching for a push through $12.70 to trigger a buy as this one would begin a new leg higher with a move up through that level. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
Bullish Watch:
ATML, AIG, CBS, DIS, MAS, NTAP, RVBD, IR, MIPS, MTG, AVL, CMA, SVM, NDAQ, MTW, ATPG, KKR, SINA, WHR, CBL, MHR, CCME, SPMD, REMX, PEI, NXPI, SFY, NVTL
Bearish Watch:
NFLX, COH, YUM, AEM, BVN, SODA
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.
