Good evening StockBandits!
Stocks responded negatively to more Greece-related news this morning, producing a downside gap and some follow-through selling for the first 45 minutes. The uptrend lines of the past 6 weeks were broken in the S&P 500 and DJIA, but the NAZ and RUT were able to hold just above theirs to maintain their channels.
The day was far from over, however, and what we saw was more of the same since mid-December with a slow-grind higher as the market erased its losses. Shorts covered and bulls put cash to work, reminding everyone who is still in the driver’s seat for now. The only trouble the bulls might have on their minds tonight is the fact that once the losses were erased, the buying stopped. Strength is about seeing both dip-buying and advances, but lately we’ve seen the S&P stagnate and that isn’t impressing me – particularly with this market so overdue a pullback.
The anticipation of a pullback has been widespread, and that may have contributed to today’s lack of downside follow through intraday. Shorts have likely been attempting to get positioned in recent days, so once they got a decent move this morning, they were quick to cover – after all, it’s not as if they’re running on a lot of confidence of late. That will change at some point, but for now we’re still waiting on some meaningful profit-taking while the market stays afloat.
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: KORS, TRIP, ANR, OPEN, CRM
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.
