Good evening StockBandits!
The steep selloff we saw on Friday only saw follow through into this morning, as the indexes tested the waters on the downside before reversing back into positive territory. The gains weren’t impressive at all, but for the time being, the bulls have stopped the bleeding.
Of particular note today was the fact that the NAZ bottomed at 2676, the exact level pointed out here last night. The S&P 500 reclaimed 1278 after respecting Friday’s lows. Finally, the RUT reclaimed 779, so the key short-term levels I’ve been watching are still valid.
At this point, the market is attempting to find its footing and we could see the battle continue on both sides. The recent highs are serving as resistance, and former highs are (for now) serving as support. As long as we’re caught in between those levels, we can likely expect some back-and-forth without any lasting momentum as traders respond in knee-jerk fashion to headlines which are interpreted as potential market-movers.
We will continue to have opportunities even within this range, so long as we look to primarily hit singles with a shortened timeframe. And eventually when we do see the market resume its course – either with the uptrend or with the pullback which started last week – we should see more opportunities emerge for longer timeframes.
Tonight I’m going with the written format rather than the usual video, as I’m coughing too much and my throat is too sore to speak. Therefore, my notes will be on the charts themselves tonight. Hopefully in a day or two I can return to the show-and-tell video format. Trade ’em well on Tuesday!
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
ATI, AA, SGY, CAM, SRZ, APC, NXPI, MCP, CAT, IVN, SODA, SOL, RIG, RJF, SLB, AMRN, SOLR, LDK, JKS, TEX, DV, RKT
Bearish Watch:
ANR, AEM, RVBD, FFIV, BWA, FCX, YUM
The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.
Jeff-
On your day trades, do you use a % to dtermine your stops or is it more organic than that.
Thanks.
Ben
Hey Ben,
Good question. I give most day trades 1% stops from entry, but for a wild stock (such as MCP) I will reduce my size and use a wider stop (maxing out at 2% from entry). So for XYZ with a $25 buy point, that’s a $24.75 stop ($0.25).
Make sense?
Also, check out the day trading strategy page from the top navigation:
https://www.thestockbandit.com/day-trading-strategy/
Let me know if I can help further!
Thanks Jeff. Now can you make it stop snowing?
Ben
Ha, if I had that power I’d also have tomorrow’s WSJ 😉