Good evening StockBandits!
Another gap opening to the downside slowly found its footing today as timid buyers gradually lifted the market back around the flat line by early-afternoon. However, it was short-lived and what then started as a pullback quickly evolved into just a hard selloff. By day’s end, the indexes had shed almost 2%.
The boundaries of the wedges we’ve been watching of late continue to be tested, but with those wedges tightening by the day, we’re nearing a resolution to this indecision phase by default. Eventually prices will either pierce the upper or lower trend lines, even if we simply move laterally from here.
An ideal signal would be a penetration of either trend line with some force, so that the move will have a better shot at sticking. Right now though, traders lack so much conviction that it may need to coincide with some news in order to get a meaningful initial break – one way or the other.
Tonight my bullish watch list has diminished due to the poor finish this afternoon, but should things happen to perk up a bit we could see many stocks poised to push through descending trend lines. For the moment though, I’m looking to take it easy while waiting for the market to give us an inidication it’s ready to go. Tonight we finished not far from the lower trend lines, so a downside resolution is not at all out of the question, despite all the bullish price action of late. Perhaps a shake-out is needed before we can run again, we’ll just have to see.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
Video Stocks Discussed: VC, IMAX, BWA, MCP, OPEN
Swing Trading Candidates:
NONE TONIGHT
[table “168” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
