Good evening StockBandits!
Positive economic news this morning combined with short-term oversold conditions from yesterday to produce some early strength today which was built upon throughout the day. The gap up this morning saw only a minor and brief attempt to get sold, and from there the market simply trended higher. Shorts were covered and the dip buyers who have been absent of late finally arrived to put cash to work. The result was an impressive rebound of triple-digit proportions.
It’s noteworthy that as attractive as today’s bounce was, it still leaves the indexes in a technically vulnerable position. The NAZ is still well shy of the 2150 level, and still below its broken uptrend line with today’s inside day, and the S&P 500 has only recovered about 1/3 of what it’s given back from the highs last Friday. This warrants caution for new buys here, despite the possibility that this dip may ultimately mark another higher low on the daily charts.
The character of the last few days was indeed different, and a bounce was expected, so the real clues will lie in the price action of the next few days as we see whether this bounce finds follow through or if instead cash gets raised again.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: TNB, WCN, AONE, WYNN, X, BAC, CMG, AMZN, NFLX, TGT, FCN, GYMB, GME, AMGN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
RAI, OSG, HAL, CAT, TNB, WCN, AMZN, PNC, FULT, NFLX, LINE, WFSL, DTE, CHKP, TGT
Bearish Watch:
CMG, GME, AMGN, BAC, MON, MCO, FWLT, X, ANF, TCK, AM, WYNN, GYMB, AONE, FCN
The Hit List will be coming out soon with discussion on open positions, stops and targets, so be sure to watch for it.
