Good evening StockBandits!
The wedges we’ve been watching lately were resolved to the downside today as stocks suffered another hefty loss of almost 2% on the session. Key levels were tested or broken, which I’ll cover in greater detail in tonight’s video, which leaves the door open for a potential acceleration move to the downside should we happen to see those all give way.
On the flip side of the coin is the fact that we’ve not seen 3 straight declines in the S&P 500 since September, so for two straight selloffs to test a key level today might bode well for either some stabilization or possibly a bounce if that streak is to stay alive. There’s also the potential for this wedge breakdown to prove to be a bear trap, so it’s possible we still see a turn higher into the holidays.
Overall, we’re still pretty much range-bound over the past 5 weeks, albeit a pretty wide range. The market has done a nice job of basing after a massive October rally, so the benefit of the doubt still belongs to the bulls. This pullback might find continuation, and if so, the next critical gauge will be whether we stop shy of late-summer support and establish a higher low.
For now, many stocks continue to base, and that’s not leaving me with a lot of candidates for tomorrow’s session. I’ll be patient though, knowing that some days are more ripe with opportunities than others, and the key is not forcing trades when setups are sparse.
Be sure to also either scroll down or hit this link for my post today Don’t Be a Monkey. Just a post I wanted to share about avoiding traps in trading and approaching each trade with the right mindset for long-haul success.
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: TDS, RMBS, NIHD, X, CVD
Swing Trading Candidates:
NONE TONIGHT
[table “169” 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.
