Good evening StockBandits!
The bulls kicked off 2010 with a loud and clear message that they don’t intend to step away after last year’s solid performance. A gap higher this morning translated into a NAZ open which was 25 points higher than its close last Thursday, putting not only it but each of the major averages in new high territory. Volume also returned to better levels as traders returned to start the New Year.
We’ve seen considerable strength in just the last couple of weeks with only a few days worth of rest in recent days. Today’s pop higher reminds us that often times strength brings more buyers into the picture, and given last year’s index moves, it’s no surprise that cash was coming off the sidelines today in case the run continues.
In looking through a large number of individual charts tonight, I noticed many strong stocks but relatively few new setups for tomorrow. Sometimes that’s the case, so rather than chase this move, I’m looking to take the cleanest setups I could find 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: DECK, MDVN, ADS, INFA
Swing Trading Candidates:
INFA surged higher after a breakout in December on heavy volume, and in recent sessions it has put in some needed rest with only a shallow pullback. Today the stock turned higher within its consolidation on increased volume, indicating it’s ready to challenge the trend line just overhead. I’ll be a buyer if this one can clear the trend line at $26.70, which could free it up to begin another leg higher.
Bullish Watch:
CBS, CBT, STT, FMCN, INFA, DECK, RRD, IOC, UAUA, MDVN, CYH, LEAP, VECO, NEP, APL, ADS, OVTI, FLR, CERN
Bearish Watch:
FDO
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.
Hi Jeff,
Today’s action was great, but my institutional trading studies show that a lot of today’s action came from small lot buyers. I agree with your approach of being cautious. Trade like a bandit, take the money and run.
Hey Omar,
Thanks for sharing this. I think that’s probably right, particularly when I think of how many people at the end of the year saw what the market had done and decided “I won’t let that happen again.” They were likely eager to put money to work, and I’m sure that contributed to the gap up this morning as all those orders were pent up over the past few days.
The trend is definitely still up, but it’s wise for us to not be over anxious. Patience pays in this game, and if we wait for the best opportunities, there will be plenty of them over the course of the year.
Hey Bandits,
Wanted to bring to your attention one other setup which I ran across this morning in WIT. I put up a post on the blog with a chart mark up you may be interested in checking out: https://www.thestockbandit.net/2010/01/05/nothing-wrong-wit-this-one/
Go get ’em today!