Good evening StockBandits!
On the heels of positive news from heavyweights MSFT and AMZN, the market jumped higher Friday morning. The early strength didn’t last long at all though, and the highs of the session were made in the opening minutes. As the morning progressed, the opening gap was filled and the indexes turned negative soon after. A gradual downtrend continued into the afternoon, although most of the weakness was seen in the first portion of the day.
We’ve seen many dips get bought in recent months, but we have not seen a lot of strength get sold. Last week we saw key reversals occur with bearish engulfing bars painting the charts on Wednesday, with those highs holding for the remainder of the week as price proved unable to eclipse them. To see the market putting in some short-term rest is encouraging, although we have yet to see much of a pullback. For now, key levels are being held, so we’ll watch them closely while waiting to see if further selling kicks in.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
–
Video Stocks Discussed: ROVI, BKE, AMAG, VISN, SINA, KCI, FCEA, MCRS, JEF
Swing Trading Candidates:
JEF reversed hard last week on earnings, changing character abruptly from the uptrend which had been in place for the past few months. Here the stock is struggling to bounce, and in the process is creating a bear flag pattern. A break of the $27.10 level would confirm this pattern, so I’ll use that level as a trigger for initiating a short sale.
Bullish Watch:
NTRI, VISN, ARST, BLC, TCK, IPI, SINA, PVH
Bearish Watch:
GYMB, STEC, A, LBTYA, CPT, DWA, ROVI, BKE, AMAG, CNW, VMC, AM, KCI, FCEA, MCRS, JEF, MBFI, FCN, URS, GVA, NVDA
The Hit List will be coming out soon with discussion on open positions, stops and targets, so be sure to watch for it.
