Good evening StockBandits!
The major averages finished mixed today as the NAZ sold off, the S&P finished flat, and the DJIA upticked slightly. The only momentum seen in the overall market was some mid-day selling, but even that was once again met with some dip-buying which provided a minor afternoon lift.
The real headliners today were the recent momentum stocks which got slammed such as AKAM, VMW, CRM, FFIV, VHC and CTXS. Interestingly, those have been among the market leaders of late which have seen every dip get bought. Today however, the selling was relentless, and that’s notable. To see the high flyers take a big beating on heavy volume is something to pay attention to. It won’t necessarily lead the market into a pullback if other leadership emerges, but it will give the momentum players something to ponder the next time we see more than a hint of red hit the tape.
In addition to those stocks coming under fire, I saw quite a few others which looked to be entering into rest phases with today’s bars on the charts. That’s positive for the creation of bases and patterns from which to trade, but it might mean less action for a day or two until some of those patterns are able to mature. Patience in trading involves waiting for those patterns to get set up properly, so let’s keep that in mind over the next couple of days.
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!
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Video Stocks Discussed: BORN, ATLS, ATW, GMCR, THOR, SLAB
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
DV, BORN, IVN, MAN, ATPG, TRE, GPS, ATLS, TIE, LUK, ATW, YGE, AA
Bearish Watch:
GMCR, ADBE, THOR, BKE, SAFM, LLL, AGCO, SLAB
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.
