Good evening StockBandits!
The bulls returned from the weekend after being able to dwell on last week’s rebound for a couple of days, and their confidence was intact. The morning strength held up very well, despite the lack of volume associated with a national holiday. However, as the afternoon progressed, some selling pressure kicked in and erased the early gains as traders moved to lock in profits. Once again though, the dip-buyers provided support, keeping the slide contained.
It’s options expiration week, which usually brings with it some added volume. I would also expect the post-holiday trading tomorrow and into the remainder of the week to bring some higher volume, so perhaps that’s what it will take to get this market moving. I’m still staying pretty selective and just taking what the charts are providing. Interestingly, there seem to be more bearish setups emerging than bullish, most of which are of the failing-bounce variety.
Before we get to tonight’s video, let me just quickly remind you that you may view the video in full-screen mode by clicking what looks like an X in the player control right beside the timer. Hitting ESC on your keyboard will bring it back down to size. I’m still experimenting with video size for the next several days to find the best quality, so please be patient until then!
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Video Stocks Discussed: ALGN, DECK, TLB, VMC, GYMB, DOW, GET
Swing Trading Candidates:
DOW has been acting somewhat toppy in recent weeks with the failure to clear resistance formed in September. In the past 2 weeks, the stock has sold off and bounced back, creating a well-defined rising trend line. I like the risk/reward here for a possible short sale if that trend line gets broken, so I’ll be using $25.85 as a trigger price for a short entry. My stop will be just above the bounce high (see the Hit List for stop & target levels).
GET has been trending lower for a few weeks now after a sharp turn lower from the September high. In recent days, this stock has bounced quietly on weak volume, creating a rising trend line of support which could easily get broken. A move down through the trend line at $18.95 will trigger a short sale for me, and I’ll be setting a stop not far away as I’d expect this one to work quickly or not at all. My stop and target levels are on the Hit List.
Bullish Watch:
THO, TLB, HAL, M, DECK, ADM, XRTX, ALGN, YONG
Bearish Watch:
JOE, STEC, HAWK, FLR, SNDK, FUQI, X, OVTI, DOW, VMC, GET, GYMB, CMC, LBTYA, AKS
The Positions Post (‘Hit List‘) will be coming out soon, so be sure to watch for it.
