Good evening StockBandits!
The recovery rally from Tuesday’s lows continued today as the indexes tacked on additional gains to push even further into their recent trading ranges. And as hard to believe as it may be to think we’re short-term overbought (unsustainable pace) after just a day and a half, that’s where we currently stand. The rally from Tuesday’s lows represents a 9.4% climb for the RUT, a 7% rise for the NAZ, a 6.4% S&P 500 move, and a 5.1% rally in the DJIA. Those aren’t little bounces.
Having defended the low ends of the ranges on a closing basis with this sharp recovery, the bulls now have some breathing room should they choose to take a rest. A pullback from current levels allows some freedom of movement in the short term, should we see some profit-taking kick in. That wouldn’t at all be a surprise after this steep run, but it’s also possible the bounce continues just for the sake of overdoing it (like this market has done so many times of late).
We have a big jobs number due out on Friday in the premarket, and it could be that we simply rest tomorrow in a choppy fashion to help digest this move ahead of a highly-anticipated economic number. Bottom line: anything’s possible here, so maintain an open mind.
The harsh selloff from last week’s highs into Tuesday’s lows and the subsequent quick rebound since then has spoiled a great many charts of individual stocks which were attempting to build some bases. Such is the nature of a volatile, indecisive market, but it leaves me with some thin watch lists heading into tomorrow’s session. As such, I’ll focus on a few names and otherwise keep an eye on the major ETF’s for some potential movement.
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: MCP, GME, VRA, XOM
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “139” 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.
