Good evening StockBandits!
Following Monday’s breakouts, the indexes weren’t able to do a whole lot today. A minor test of the downside this morning did find buyers though, and from there we saw the market trend gradually higher into the closing bell. By the end of the day the indexes were positive, but overall it was a well-deserved day of rest.
With key levels being cleared yesterday across the board, some follow through is expected by many relatively soon. The fact that the market has run a considerable distance just in the last 2 weeks does warrant some rest, but breakouts generally should be followed by additional strength, particularly when they occur after a few days of rest like we saw last week. Regardless, today’s quiet action is a healthy way to digest Monday’s gains, and the bulls provided yet another reminder by offering support on even the slightest dip that they still fully intend to defend the uptrend.
Before we get to tonight’s video, I just want to be sure you were able to check out today’s post for The Bandit Blueprint. It’s a spreadsheet created by a fellow Bandit, and it’s intended to assist you with position-sizing and decision-making on trades. Be sure to check it out when you get a chance, I think you’ll find it incredibly useful!
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: CAT, MMM, UIS, CTRP, ITG, AMED, HAL, BEN, USO
Swing Trading Candidates:
HAL is once again challenging upper resistance here within an uptrend, which means another leg up could begin any day. I’ll be using the trend line at $32.05 as a pivot for a buy, but will only be a buyer once that level is cleared.
BEN has been constructing a well-defined cup & handle pattern over the past few weeks, and is now acting as if it could break out from this pattern any day as it challenges upper resistance. I’ll be a buyer if and when the $116.50 level is broken as this stock begins a new leg up.
USO is an oil tracking ETF and here it is sitting at the top of its recent descending channel after a nice advance during October. This creates a large bull flag pattern, and a breakout above the channel at $41 will trigger a buy for me.
Bullish Watch:
NTRI, HAL, FCN, CAT, LCAPA, BEN, FCX, MMM, TUP, CVX, FDX, MELI, TX, USO, UIS, OIS, CTRP, TXT, COP, PCLN
Bearish Watch:
AMED, WFMI, MCO, RAH, ARO, AMAG, LEN, ITG, STEC
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.
