Good evening StockBandits!
Monday’s weakness carried over into today as the dip-buyers stayed again for another session. The DJIA, being only 30 stocks, was actually up slightly on the day thanks to solid gains by AXP and XOM. However, techs led the downside as the NAZ gave up a little more than 1%, while the S&P was off a couple points, keeping each of those indexes beneath the key levels of 2150 and 1074 that they broke yesterday.
To see some follow through on the downside, even for a day, has been unusual. Although no big technical damage has been done to this point, the rolling-over appearance of the daily charts of the indexes does imply the buyers are exercising some short-term caution here, which isn’t a bad thing. Much more evidence will be needed before any conclusions can be drawn with regards to a market top, so it’s far too early to even consider that at this juncture.
Nonetheless, some rest is being put in for now, and a pullback will help to separate the strongest stocks from the weakest. Even if this dip merely results in another higher low, it would not be unhealthy if we see some continued short-term weakness.
One last note before we get to the video… I was asked today how to get an avatar to show up beside your name when you comment on the posts here in The Hideout. It’s extremely easy, and I’d love it if you chose to do so – just visit this site, set your picture and the same email address tied to your Bandit subscription, and then whenever you comment here it will automatically show up. This will help bring some added personality to The Hideout, so keep those comments coming!
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: TNB, UTHR, SWI, DWA, CA, VNO, SRS, PWRD
Swing Trading Candidates:
SRS may be in the process of reversing its longer-term downtrend, as it has stabilized in recent weeks and has a potential higher low now in place. A push back above the $10.10 level will trigger a buy for me as the recovery in this inverse ETF continues.
PWRD has carved out a potential lower high here after failing to achieve the peak levels reached in September. Over the past couple of weeks, the bounce has unfolded with poor volume, making it difficult to trust. I’m watching the steep rising trend line for a break at $44.40 to trigger a short sale.
Bullish Watch:
SRS, SMN, SKF, TNB, WCN
Bearish Watch:
CPT, NTES, DWA, ROVI, BKE, GVA, X, VMI, UTHR, CA, PPS, R, VNO, KIM
The Hit List will be coming out soon with discussion on open positions, stops and targets, so be sure to watch for it.
