Good evening StockBandits!
The indexes had become rather stretched to the upside in recent days, raising the likelihood of some profit-taking or rest. Today it appeared we just might get some selling as the indexes backed off yesterday’s levels, but the downside found no traction and ultimately it proved to simply be a day of rest. The S&P 500 broke its win streak with a fractional decline, but overall we finished near Monday’s closing levels across the board.
The buyers remain in control of the tape, and that’s keeping prices afloat for now. The short side has offered limited success, despite the potential it carries after such a significant bounce, and that means short-covering continues to play a role in the current environment. A rest or some kind of pullback from these levels would be a healthy thing, and it would perpetuate the trading range for the S&P 500 and NAZ, but for now the bulls have the ball and don’t seem eager to let go.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: SVA, DTV, GYMB, ACL, ARO, CVX
Swing Trading Candidates:
CVX ran higher from its October low, and since then has channeled for more than 3 weeks. This price action has constructed a large bull flag pattern, and I’m watching for a breakout through $78.50 to trigger a buy. Today’s action tested the upper end of the range, implying a breakout could come any day.
Bullish Watch:
TNB, NFLX, AWI, GY, SWK, CFN, HGSI, CVX, DTV, LMDIA, BEXP, SVA
Bearish Watch:
GYMB, AONE, MCO, WFMI, APOL, GRMN, LEAP, RTI, ACL, JNPR, ARO, ABAX, CRL
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
