Good evening StockBandits!
News that Greece is set to hold an apparent vote on whether to accept last week’s bailout left traders on the defensive again today with yet another huge gap to the downside to kick off November. That meant a 77-point change from last night’s NAZ close to this morning’s open, which is about a 3% gap. Intraday, we saw an initial bounce attempt which erased a portion of the opening deficit, but it didn’t stick and the market spent the rest of the day in a choppy range, never getting far from its lows.
The issue at hand remains Europe right now, just when the market thought it was clear of it. The whole ordeal is a little bit silly to think that Greece is at the center of attention, but the fear is that it could be like a line of dominos with larger countries in Europe being next. With it being such a global economy these days, concerns stretch far and wide. Toss into the mix the fact that the market is comprised of traders who prefer to sell first and ask questions later, and it’s not real surprising that we’re seeing a big response like this based more on worry than actual news.
This may prove to be a temporary setback for the rally which started in early-October, but for now we’re moving swiftly lower and that requires our respect. It’s not a selloff to just step in and buy on no basis. Rather, we could stabilize, rip higher on upbeat news, or continue the slide a few hundred points a day – nothing is out of the question in this kind of environment. Toss into the mix tomorrow’s FOMC event and there are reasons to stay on alert for dips or rips, whatever may come.
So, we’re still pulling back and we’re still subject to headlines for the time being. With each passing day, we’re another day closer to putting this behind us. But it’s important to remember that as traders, it’s our job to adapt and persist even if it were to drag on. We have to accept the environment we’re in and make the necessary adjustments. For some that means strictly day trading, and for others it means either shifting to the sidelines temporarily or accepting much greater risk.
I put out a post earlier on Realities of the Current Market. You can also scroll down on the Bandit Hideout homepage to read it, but I wanted to be sure you saw it. Check out the post and share your feedback on it.
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: ADTN, SGEN, SODA, VRA, CIEN, PFCB, RIMM
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “158” 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.
