Good evening StockBandits!
The indexes got spanked today as the pullback accelerated, leaving the dip-buyers sidelined for the first time since August. Each of the uptrend channels have now been broken on a closing basis, which brings some unity to the indexes after seeing the NAZ take the lead while the S&P held inside its channel yesterday. The morning gap was followed only by selling, and even though the market finished slightly off its lows, there was some technical damage done.
Monday’s inside bars proved to be continuation bars, as they sometimes are, and that was followed by decisive moves lower today on heavy volume. We do now have gaps from this morning which could get filled on a bounce, but the swift moves lower across the board may not inspire the buyers just yet. The intermediate-term trend is still up, and that will require a lower high and a lower low in order to change it. The one thing this market has going for it in the short term is the fact that many stocks have pulled back adequately and may soon be ripe for a bounce. Only time will tell how far that bounce carries, but we’ve now seen a moderate initial pullback off the highs, and that might lead to some short-term stabilization. The buyers will have to step in soon in order to produce that, but they’ve had good success since August and aren’t likely to get their confidence deeply shaken by this first pullback.
Heading into Wednesday, there are a number of setups on my radar, and I’ll be utilizing multiple timeframes (day & swing), as well as setting up plays for both the long and short sides. That should lead to some action, but as usual, I’ll wait for my trigger prices to be reached before making any moves.
As a reminder, for a short time longer I’ll be utilizing the written format of the Broadcast as I get the new office set up with the equipment I use for recording the nightly video. Once that’s ready, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
BEAV has pulled back from its highs, but in the past couple of sessions has stabilized. A turn back up through the descending trend line will trigger a buy for me as this one regains its footing and pivots higher. I’ll wait for the trigger, and will have a stop just beneath short-term support. As with all swing trades, my stop and target levels for this trade will be on the Hit List here inside the Hideout.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
TZOO, LULU, IMAX, LPS, CY, SODA, BEAV, QCOR, ALK
Bearish Watch:
ICE, LZ, VFC, XRAY, EAT, OFC, MCP, HSIC, MELI, PWR, CTXS, PRGO, DLR, AIZ, AGN, LAZ, CAVM
The Hit List contains stop and target levels for my swing trades.
