Good evening StockBandits!
A positive start to the week quickly found momentum this morning as the indexes jumped right out of the gate. A big surge in buying kicked in right after the opening bell, taking each of the indexes to new recovery highs on the year as stocks continued their climb. Some afternoon profit-taking did bring the market down a bit from its best levels of the day, but all in all it was a very solid performance by the bulls.
Aside from the impressive point gains, each of the indexes cleared key levels today, making it a technically significant day as well. The S&P 500 closed above 1100, the NAZ closed above 2190, and the DJIA finished above 10,400. Each of those zones have been outlined here in recent weeks and months, so the key going forward will be whether or not the bulls can build on today’s strength. We’ve seen quite a run just in the past couple of weeks, but with momentum on their side, the bulls could continue to drive stocks higher for a little while longer.
At some point we’ll need to see a more meaningful rest, but the few days of quiet action we saw last week helped to alleviate some of the overbought conditions which had emerged, paving the way for another leg up. Today’s move could be the start of it, but it’s still a time to stay on our guard just in case conditions shift suddenly.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: WHR, NTRI, HBI, UIS, WYNN, ARO, WFMI
Swing Trading Candidates:
WFMI has established the $26.70 area as a key level in recent months with it serving as both resistance and support. In the past few weeks, the stock has trended lower to approach that level once again, and after a failed bounce attempt which created the ‘h’ pattern, it may be poised for another move lower. There is an unfilled gap from early August which I’ll be using as my target for this one, and I’ll look to short sell it if it undercuts the $26.70 horizontal trend line.
Bullish Watch:
WHR, NTRI, FCEA, FCN, ADSK, CHKP, MGA, MCK, LCAPA, REV, MMM, TUP, CVX, FDX, DTV, HBI, SFD, UIS, HMIN, SGY, EMN
Bearish Watch:
AONE, WFMI, FUQI, WYNN, STEC, RRC
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.
