Good evening StockBandits!
Another attempt to push higher this morning ultimately tipped the scales a bit too far as the bulls decided to book some long-awaited profits. The bounce from the lows of just 8 sessions ago has brought the DJIA and S&P 500 each to new recovery highs, while the NAZ got to within just 11 points of its highs today. To say the market had become stretched to the upside in the near term would be an expression of modesty, as there simply has been no rest in the relentless advance. However, today’s reversal points to some exhaustion having set in over the short term, so perhaps we’ll finally see a little bit of a pullback.
It’s far too early at this point to gauge whether today’s decline is the start of something more meaningful, but it is a logical time to see the market back off from its highs after such a sharp run in recent days. The bulls still have uptrends in place across the board, so it’s going to take quite a bit to change that. One scenario which could develop here is that the short-term trading range could persist for a little while in the NAZ and S&P 500, particularly if some follow through on the downside is seen pretty soon. I’m not rooting for a selloff, but am glad the nonstop bounce has taken at least a breather for a day.
Tonight will be written format as that’s what works best for me, but we’ll return to the video format next week. I’m setting up some day trades and swing trades heading into Friday, so here’s what’s on my radar with my notes on the charts themselves.
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Day Trading Candidates:
Swing Trading Candidates:
Bullish Watch:
QID, AMAG, FCN, HS, REV, MELI, SVA, XIDE, QCOM, DISH
Bearish Watch:
DISCA, JBL, FWLT, DTG, WFMI, FUQI, JLL, APOL, MAN, SCHN, RTI, JNPR, ARO, CRL, CMI, HP, XEC, CLR, MHK, HOT, HON
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.
