Good evening StockBandits!
Ahead of tomorrow’s highly-anticipated jobs report and on the heels of an already very sharp bounce, buyers threw caution to the wind today to tack on nearly 2% gains across the board. A choppy start gave way to a quiet push higher as spurts of momentum were never seen, replaced instead by a number of incremental new highs followed by intraday basing action.
Attempting to fade big recent moves has proven futile for a couple of days now, and those who have attempted to short strength have paid for it. With the market now even more short-term overbought than it was yesterday, the proverbial rubber band is considerably stretched at this point.
The trader in me can’t help but expect some kind of a sell-the-news response tomorrow after such a sizeable rally ahead of the number, regardless of what the actual number is. Stated otherwise, the bar has either been set very high for tomorrow’s econ numbers, or the market is finally ready to disregard headlines.
I’m in cash tonight, so I have no bias as we head into tomorrow. The difficult thing here is locating quality setups for plays, as the hard selloff we saw last week has been replaced by a big retracement move, leaving nearly every stock in the universe without a base. Patience seems to always be a factor in trading, and that’s particularly true at this point as we wait for setups to arrive.
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: CPHD, PANL, VHC, FFIV, CRR
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “140” 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.
