Good evening StockBandits!
The indexes were able to shake off a poor start this morning, recovering to close the opening gap. Although the net changes were minor and mixed, today served as yet another reminder that the dip-buyers are still in our presence. For intraday trading though, the action was limited along with the volume in many stocks. Follow through has gotten harder to come by in recent weeks, and we’ve seen fewer trend days as a result.
With an FOMC meeting next week, followed by the November elections, and earnings season in full swing right now, momentum has become rather concentrated and we’re seeing the overall market showing some hesitation to make big moves right now. Traders are averse to uncertainty, and at the moment there’s quite a bit of it. The rally has been impressive from the August lows, but we’ve reached important resistance areas in each of the averages and that’s also playing a role in the lack of momentum. Nonetheless, the trend is still up, and that deserves our respect until signs emerge that it’s changing.
In working many charts tonight, I found quite a few mediocre setups. Those aren’t my favorite, but I’ve still included them in the Watch Lists down at the bottom of the Broadcast. There are some setups I have on my sheets for Wednesday, and I’ll walk you through them momentarily.
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 Wednesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
AA is in a solid uptrend and has put in some healthy rest in the past two weeks. The stock has pulled back only slightly from its recent high, and has found support. This has created a wedge pattern, which if confirmed with an upside breakout, could bring another leg up. I’m watching the upper trend line for a break at $13.05, and will be a buyer for a swing trade if that occurs. As with all swing trades, my stop and target levels are 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, FSYS, ISLN, SMT, IMAX, GSM, VHC, STT, MCP, ATPG, GPS, AA, BKD, CF, CHKP, BYI, KMX, PWRD, WYNN, LAZ, DAR, WNR, TRGL, GBX, PCX, PTEN, CCSC, CSC, CCME, DDS, PENN, SIGA, NUVA
Bearish Watch:
DGX, SWN, OSG, OCLR, MS, JOE, TEX, GOLD, TCK, CRI
The Hit List contains stop and target levels for my swing trades.
Jeff,
We thought PLD earnings report was going to be this Thursday. But instead, it reported last night.
Hi Ken,
I saw that, although EarningsWhispers still shows a confirmed 10/28 before the bell. Yahoo Finance doesn’t display a date, and of course a company can report early. It’s frustrating though to see a confirmed date and then have the report hit early.
Just a function of trading during earnings season I suppose, but I’ve found over time the negative & positive surprises tend to even out.