Good evening StockBandits!
Today we saw another session of minor net changes, and for once that actually told the story of the day. There were no lasting intraday moves, and the indexes finished little-changed and mixed. Volume held strong, which is evidence that there’s ample liquidity here, but as traders what we really need to see is more widespread momentum in one direction or another.
The limited movement of the day made for narrow ranges, which most likely was due to traders unwilling to stay with new positions ahead of tomorrow’s jobs report. That’s a big focus of the market right now, so with a potential gap looming tomorrow, it seems most traders were content to flip out shares into brief periods of strength or weakness today, preventing any big moves from really developing.
I’m still seeing quite a few charts which are simply churning here, which is to say they’re basing. Many have alternated strong and weak closes this week, showing they’re simply treading water while waiting for a bigger catalyst to really produce a move. Given that there’s such limited follow through at the moment, I’m still keeping my timeframe short while we wait for better momentum to surface, and for Friday, that means day trades for new plays while I continue to manage my existing swing positions.
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: YOKU, LEN, FWLT, MCD
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
FCS, RVBD, LEN, CBS, ATML, YOKU, DANG, IVZ, ITMN, FNSR, FWLT, TSL, MTW, TSLA, CF, KKR, AGU, MMR, STEC, HUM, JBHT, GMXR, OC, ILMN, VHC
Bearish Watch:
MCD, NG, NFLX, NKE, KMX, RHT, WHR, DVA, MSB, UA, LFT, SAFM
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.
Might be worth noting to look at the intraday chart on KOKU. A 1% stop is probably too tight. I’ve traded this (including today). Smaller share size, allow for retraces, and scale out in 3 or 4 steps, or add on the way up. Great stock if you play it right, in my opinion. Or one that can really kill you (not unlike many of these internet and technology IPOs (this is a Chinese internet company).
Great point Jon, I should have included that. I’ll absolutely be trading smaller with a wider stop of 2%. It whips around pretty good when it isn’t trending, but can really run when it does pick a direction. Thanks for the reminder!