Good evening StockBandits!
A morning gap to the upside set the stage for some continued strength on the heels of the multi-day rally we’ve already had, and pretty soon new recovery highs were set for both the DJIA and S&P 500. The NAZ also got to within 1% of its October high, but some mild profit-taking brought each of the averages down from their best levels by the closing bell.
The overall market remains very extended in the short term, and yet the creation of new recovery highs is no doubt a bullish event. As traders, it’s imperative that we not only gauge direction, but risk/reward when contemplating trades. Tonight that’s the biggest factor to me, as this is a high-risk spot to be buying for any timeframe other than quick trades. At the same time, as extended as prices have become and as ripe as the conditions are for some profit-taking to kick in, we still have yet to see it begin, and that’s grounds for caution when considering short sales.
So with the pair of one-way moves we’ve had in just the past 3 weeks, many charts are showing large V-shaped patterns which are simply too sloppy for initiating new multi-day positions. I’m looking to keep my trading timeframe brief for new plays tomorrow, while managing existing swing trades.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: FSYS, REV, NTRI, ROVI, NSC, WFMI, ARO, XEC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
AMAG, OSG, NTRI, FSYS, REV, CVX, SVA, ROVI, SFY, NSC, XRTX
Bearish Watch:
GYMB, AONE, WFMI, FUQI, APOL, SCHN, RTI, JNPR, ARO, CRL, RRC, XEC
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.
