Good evening StockBandits!
The market surprised quite a few people last week by doing very little. Some had forecasted for a sharp decline post-New Year which would catch many bulls off guard. Others were looking for a spike into the first week of January, and although Monday’s session began that way, the follow through never materialized into the remainder of the week. Case in point, the SPY finished only $0.48 higher than Monday’s opening price by Friday’s close.
It will be a long year with plenty of movement, I have no doubt. However, 2011 has begun much like the end-of-year trading action we saw over the prior few weeks. During that time, we’ve seen occasional up moves followed by several days of basing, and that’s how last week played out. The lone exception from a technical standpoint was the volume, which has returned (thankfully) to much stronger levels. With liquidity back in the picture, the trading scene should only improve with a bit more volatility.
From a trading standpoint, last week there were only select moves taking place, and I was pleased with it overall. There were only 2 swing trades I took interest in, but they both behaved quite well and produced nice gains. There were some day trade failures and some successes, but overall it proved to be a week where doing less was more. In a wait-and-see type of market like we’re in right now, that’s to be expected. I plan to continue to maintain a limited focus list until we see things get shaken up, and at some point they will. The idea is not to grow impatient while waiting, and with some solid trades coming our way last week, it makes it easier to pick and choose our spots for involvement.
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: ANR, MGA, CCME, SLV, COH
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
AA, LVS, DIS, NFLX, APC, TQNT, RVBD, CNX, ENTR, SOL, BYD, MTL, DVN, ANR, MTW, MGA, ERX, CCME, ZAGG, OSK, AXTI, SCOK, CIS, NOR
Bearish Watch:
SLV, NG, COH, NKE, KMX, AEM, LO, UA, SRCL
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.
