Good evening StockBandits!
The major averages advanced last Monday in an attempt to break away from their recent consolidation areas, but showed some hesitation into Tuesday and Wednesday’s sessions. Then the Europe debt deal was announced Wednesday night, popping the futures overnight and producing an explosive move higher on Thursday. That sent the indexes to new recovery highs before a day of rest on Friday.
We’ve seen a test of several important levels for the indexes of late, and that may continue for a little while. There’s ample overhead to contend with on the way back up, although so far those areas have only been respected temporarily given the resolve of the bulls.
Rest would be ideal here, but there’s no telling if we’ll get it or not. The bulls have been maintaining a steady bid beneath this market, which is evident with even minor pullbacks getting bought. It’s also been rare of late to see back-t0-back declines, with only the NAZ having done that since October 4th when the lows were set. Shorts remain on the run, and underinvested bulls are feeling left behind, leaving them to chase prices higher.
It certainly feels like a big change of character to go along with a huge advance in prices since early-October, but we should know more once a decent pullback kicks in. The odds favor the creation of a higher low, based solely on how far current prices are from the October lows. Regardless, it’s been good to just see some follow-through in one direction of late rather than the frequent reversals which were so common in the past couple of months.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
Video Stocks Discussed: DPZ, SINA, VRA, NAV, HAR, YOKU, OVTI
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “156” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
