Good evening StockBandits!
A relatively flat open this morning was soon followed by some modest selling as cash was raised and yesterday’s lows were undercut. The weakness didn’t stick however, and a v-shaped bounce took the indexes back up to their opening levels by mid-morning. That proved to be the most exciting portion of the day, as stocks remained relatively flat and quiet once again for the remainder of the day. The S&P 500 and DJIA were able to tack on some minor gains, but all in all it was another uneventful day.
I was checked out of my swing trades today to return to cash tonight. That wasn’t by design, but it’s fine with me given that tomorrow’s jobs report ahead of the bell could deliver a gap in either direction. It seems as though traders have been taking the wait and see approach since the gap higher on Monday morning, so hopefully we’ll see some better price action tomorrow than we’ve had the past few sessions. It’s been a profitable week of trading though, which is nice for the lack of movement out there.
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: HOC, MHP, AXP, FDX, STT, PBR
Swing Trading Candidates:
STT has been recovering since its correction, and it has been acting well in recent weeks. I’m watching it here as it sits beneath a trend line, which if crossed, will trigger a buy for me at $45.00.
PBR broke down in early December, and since then has struggled to bounce. Here it’s contending with some overhead resistance while resting on a rising trend line. A break down through the rising line at $48.00 will trigger a short sale for me as this one heads lower in search of buyers.
Bullish Watch:
HOC, SFSF, TCO, EOG, FLIR, EQR, PCL, ARE, VNO, STT, CAGC, RDN, MHP, MDVN, CYH, SNDA, ROK, HPT, MATK, AVB, AXP
Bearish Watch:
PBR, FDX
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,
What are your general feelings regarding taking new trades on a Friday? Obviously, you will take them. A weekend is a long time for a swing trade, and brings about a lot of news. Personally I’ve found the tighter stops on swing trades are highly subject to gaps and gaps are formed by news. But like anything in life this also provides some great opportunities for nice profits.
Hey Omar!
I don’t have an across-the-board rule for Friday trades. I will say that under certain conditions, such as ahead of a long weekend (for ex: Monday holidays) or if perhaps an FOMC meeting is early the next week, I may avoid it, but otherwise I’m open to taking good setups when they come along.
You’re right, news can pile up over the weekend, but I’m of the opinion that when trends are present, the news which is paid attention to will often be of the variety that supports the existing trend.
So I’d say if you have an aversion to initiating trades on Fridays, then go with your gut. I’m sharing my game plan here each night so that you can use it to supplement your own. Hope this helps!
Thanks Jeff,
I just wanted to get your thoughts on the matter as I continue to be a student of the market.