Good evening StockBandits!
It’s good to be back with you tonight after taking care of some personal things the past couple of days. I’d much rather have been monitoring the markets and trading more actively these past two days than dealing with the sale of our house and our subsequent move! At any rate, I’m back in the saddle and glad to be here. I hope your week is going well so far.
Before we get going, I just wanted to let you know that this morning early I posted a comment beneath the Broadcast to update my stop on FFIV, as well as on Twitter, so be sure you check those channels of communication periodically and feel free to use them yourself for questions or comments on the price action out there.
Since my Sunday evening update (published Friday night), we’ve seen some decent back-and-forth price action in the overall market. On a net basis, that hasn’t left the indexes in much different shape than where they ended last week, but it has helped individual stocks in a couple of ways. First, the Tuesday slide helped some of the stocks which have shown relative weakness to stand out as true laggards. Second, it has served as a consolidation phase over the past few sessions, helping to define some short-term resistance and support zones. That’s leaving quite a few sloppy flag-like patterns, so we’ll continue to monitor their development in the coming days.
Today’s rebound was an important one to the bulls – not strictly from the standpoint of holding current levels on a technical basis, but from a psychological standpoint. To see the indexes unable to gather much downside traction, as well as continuation from Tuesday’s late-day bounce, serves as a reminder that dip buyers are still present. I’m holding off on aggressively shorting until we see a true change of character, and as of yet, we have not.
As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. My wife and I are expecting our 2nd child in December, and needed more space for the growing family. Once we’re settled and I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
JOE broke down hard recently and since then has only been able to bounce a small amount. This one has consolidated in a narrowing fashion, creating a clean bear pennant pattern. I’ll be going short if this pattern is confirmed with a break of the $20.20 level. As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
AEO, BORN, SHLD, MBI, CNW, MFC, IMAX, HNR, ZAGG, MYGN, AGCO, CF, WIT, IDCC, TWI, KMX, DAR, WNR, TRGL, GBX, CLI, PCX, HK, SMOD, AIR, TEX
Bearish Watch:
DV, SKX, SAFM, LPS, CTXS, EQIX, MTB, JOE, APOL
The Hit List post will follow shortly with my trade levels for the swing trades.
