Good evening StockBandits!
Highly-anticipated employment data failed to produce the opening gap many expected (myself included), and we saw a pretty flat open. Stocks moved lower in the first hour, but a relief bounce quickly evolved into an all-out upside reversal, and the lows of the day had been established. From there, the market trended higher throughout the session.
The buyers still have peace of mind at this point, despite how far this rally has carried without a correction, that either the Fed provides further stimulus or the economy improves on its own. Either way, the bulls have the wind at their back, and they’re doing all they can to take advantage of it. It’s been said before that the most bullish thing the market can do is go up, and that’s exactly what’s happening as the indexes each sit at new recovery highs here.
Going forward, it’s a mixed bag. On the news front, we have earnings season getting underway, and that’s sure to keep things lively. On the technical front, we have overhead resistance zones from the spring quickly approaching, and that could slow the pace of this rally. And on the psychological front, we have confident bulls and spooked bears who both continue to keep a bid beneath this market as both camps are buying every dip.
Needless to say, it’s an interesting time. I’m in no hurry to fade this rally, and like many, I feel a bit left behind with the way this market has not looked back since turning higher to start September. But as a trader, I realize opportunities will surface in both directions if I just continue to stay alert, so I’ll stay on my toes and keep an open mind.
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: FFIV, CHKP, HS, ERTS, TMO, EJ
Swing Trading Candidates:
EJ is in an uptrend but has been able to put in some recent rest. The current pullback has been rather shallow, and has also held above prior resistance (which now is serving as support). I’m watching for a trend line break at $19 to trigger a buy as this one turns back up. As with all swing trades, my stop and target levels are on the Hit List here inside the Hideout.
Bullish Watch:
FFIV, IVN, DV, EJ, ISLN, ADS, MAN, MHK, HS, ATPG, HAR, ATLS, LUK, ATW, BKD, CHKP, VSH, INFY, TC, ERTS, LOGI, MDRX, BPO, A, REXX, WIT, ALTR, FDX
Bearish Watch:
SAFM, THOR, VMC, BBT, LPS, TMO, EDU
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.
