Bandit Broadcast for 10-22-2009

Good evening StockBandits!

A big reversal on Wednesday suggested that some additional profit-taking could quite easily set in, and this morning that appeared to be taking place.  Early weakness took the indexes farther down from their highs, only to reverse course at 10am ET and trend higher for the remainder of the day.  The S&P 500 bounced from the 1074 level, right on cue, as the blue chips brought green.

We’ve seen no shortage of dip-buying in recent months, and today was no different.  The downside has been rare and shallow, making for a market which simply climbs and occasionally rests for a couple of days.  All in all, it’s been very strong, and very difficult to fight.  And just when yesterday’s bearish engulfing bars seemed to finally be signaling some fatigue, the buyers rushed right back in to leave the market sitting back near its recovery highs.

As we head into Friday, we’ll have to respect the buying pressure and consider the potential for another upside breakout to occur from this short-term consolidation zone.  At the same time, stocks have had very limited rest since early this month, so it’s important not to chase extended names at this point.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: FMCN, LVS, WYNN, OSG, GLD, TCK, AGU, IPI, STEC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

WHR, RL, APH, IR, HOG, FMCN, VISN, TCO, OSG, GLD, NTRI, IP, TCK, AGU, CYT, SUN, HAL, IPI, GGB, SINA, HSC, UTX, RRD, DECK, GPI

Bearish Watch:

STEC, CNW, PWRD

The Hit List will be coming out soon with discussion on open positions, stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff