Good evening StockBandits!
The market battled back once again from its worst levels of the day to largely erase the morning deficits after a gap down open. In the end, the net changes were minor and mixed, with the NAZ moving slightly positive while the other indexes stayed slightly in the red.
Today’s action serves as yet another reminder of the presence of dip buyers and the overall indecision ahead of the FOMC and November elections. It seems the selling can’t gather momentum with all the dip-buyers still wanting in, but momentum players are hesitant to bet big due to the news schedule and the fact that we’re essentially testing the spring highs.
With the market struggling here to gather momentum, and with the likelihood of this continuing in the short term, my preference right now is to primarily trade shorter timeframes. I’m eyeing several day trade candidates for Thursday, knowing that will allow me to participate in some movement while still managing my risk effectively. I have one swing trade on and another candidate which has yet to trigger (AA), but otherwise am staying selective here until better overall price action comes along – and it will.
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:
NONE TONIGHT
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:
FSYS, QSFT, MCO, SMT, VHC, REE, STT, BCSI, ZAGG, MCP, SOL, AA, BYI, LAZ, AMG, PWE, CCME, PENN, NUVA, GRA, OPEN, CRZO, DMAN, GD
Bearish Watch:
LNCR, DGX, MTB, MDC, TRLG
The Hit List contains stop and target levels for my swing trades.
