Good evening StockBandits!
It was another choppy session today as we saw a modest upside gap get given back somewhat quickly. However, the selling didn’t last long either, as support was soon found and the highs and lows for the day had been established right after noon ET. From there, the market spent the day churning without momentum, extending the wait for our next trend day.
I’ve noted here plenty of times lately that it seems the market is essentially biding its time until Tuesday’s elections and the FOMC on Wednesday. That’s a logical reason for big players to hold off, and it helps to explain the lack of momentum we’ve been seeing lately. The overall uptrend channels remain intact, as you’ll see in tonight’s index charts, but we’ve seen no trend days of late and the intraday action has been indecisive at best. That’s keeping the environment a bit tricky right now, as follow through has been much harder to find. However, I do expect things to pick up next week, and that should open up more opportunities for multi-day trades than we’ve had this week.
Tomorrow morning we have the GDP report in the premarket, which has been a market-mover of late. That could deliver another gap in one way or another at the opening bell, which always presents a challenge. Then we have 2 more reports in the first half hour of trading which could also impact the price action with the Chicago PMI and Consumer Sentiment. My plan is to monitor the price action in the early going to see if the gap is going to stick or fill, and see how the post-bell reports get treated, and then trade accordingly. I’m eyeing day trades for Friday, which makes the news flow particularly important.
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 Friday.
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:
IVN, BVN, SWI, VHC, BCSI, SOL, ATW, AA, KMX, PWRD, SOHU, LAZ, AMG, CSC, SPRD, CCME, UTIW, IOC, OPEN, CRZO, DMAN, MNTA, TK, AME, SLB, PII, RIMM, MOTR
Bearish Watch:
LNCR, VMW, MON, CREE, DGX, MTL, MTB, FLR, ICE
The Hit List contains stop and target levels for my swing trades.
