Good evening StockBandits!
Despite the big news on tap for this week, buyers returned from a couple of days off to spark some early strength today. A gap up open was followed by some additional strength, but soon we saw profit-taking kick in as traders recognized a good opportunity to raise some cash. That turned the tide and erased the day’s gains, taking the indexes into the red by the afternoon. In the end, the net changes were once again only minor and essentially flat, and traders collectively remained unwilling to commit big with all the pending uncertainty of elections tomorrow and the FOMC Wednesday.
It’s easy to read too much into the action here, but it’s not very useful. In recent sessions, we’ve seen minor gaps get filled in both directions, so it’s not as if there’s any real consistency emerging. The common thread is indecision, as the lack of momentum or directional bias simply shows the market is churning in front of very highly-anticipated events in the next couple of days. It could be that we see a decisive move as the news comes out, but it also may take the market a couple days to digest it. If so, we’ll stay patient and wait for some reliable signals to arrive. Either way, expectations are running high at the moment, which means there’s ample room for disappointment to creep in if something doesn’t unfold as anticipated.
My game plan heading into Tuesday is still the same, which is to keep my timeframes for new trades abbreviated. As a result, I’m eyeing some day trades, knowing it’s the best way to manage additional risk with all the news we’re likely to see in the next couple of sessions. More setups are building for multi-day swing trades, so I’m keeping them on the radar as well. As they become ready for plays, I’ll certainly highlight them here.
As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
AMG, WDC, AA, ATW, CMG, VCLK, FMC, URS, CY, BYI, OAS, PCX, PWE, SPRD, IOC, PENN, GRA, CRZO, SLB, BEXP, GRMN, JACK, BXP, CAR, DFS, GGP
Bearish Watch:
CREE, LL, V, MS, JOE, FLR, TSL, AUXL, JLL, PFCB, VFC, FLS, MMM, BUCY, HAL
The Hit List contains stop and target levels for my swing trades.
