Good evening StockBandits!
A big opening gap to the upside greeted traders this morning as overseas markets (and our futures markets) responded in a big way to news of a rescue package for Ireland. The market was able to tack on some additional gains into mid-day before some mild profit-taking kicked in. All in all, it was a solid day for the bulls though, particularly after having been absent for the past week during this pullback, as they produced a nice gain and were able to show some intraday progress beyond just the opening gap.
From a technical perspective – and that’s the one that matters most to me as a trader – we’re at an interesting spot in the short-term. Rather than discuss what may transpire in the weeks to come or whether we’ve topped out, let’s look at the near term.
To be fair, the buyers have stayed away during this pullback from last week’s highs. They’ve allowed a bit of a correction, and frankly it’s been a bit surprising to see them wait so long to step in and buy again after such persistent success throughout September, October, and early November. Today they stepped in, but they still have some proving to do. We have descending trend lines still in place, and a hint of doubt has emerged (as it typically does following a pullback) as to the resolve of the bulls. That’s giving the bears a small psychological boost – the first in quite a while – and that could make for a pretty good battle on Friday. If we see a solid close above all trend lines, I’d expect to see a move back up toward the highs. If we see a failure, it would likely be an indication this pullback is set to continue.
Tonight my watch lists have been reduced considerably, which is fine. That simply leaves me with a more focused list for Friday, and each of them will be for day trades.
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. Additionally, my wife & I are expecting our 2nd child sometime in the next 5 weeks, and our first child arrived 4 weeks early. So, ideally this baby holds off a few more weeks, but if I happen to disappear out of the blue for a couple of days, you’ll know why. Currently there are no signs to suggest that will happen, but with babies you just never know!
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Friday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT
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:
ONXX, VSH, MFC, QCOR, BEAV, JAZZ, AMCN, XIDE, STT, TSLA, CODE, LULU, ACOM, BCSI, KMX, IGTE, TZOO
Bearish Watch:
OFC, PSA, MMYT, BIG, VNO, GRMN
The Hit List contains stop and target levels for my swing trades.
