Good evening StockBandits!
Last week we saw a resolution to the symmetrical triangles (or wedges) we have been watching lately as stocks came under pressure to crack the lower rising trend lines. The NAZ undercut important support at 2600, but the other indexes each remained inside their multi-week trading ranges. That offers us some mixed signals, as either the NAZ is faking it or it’s leading the others and they simply haven’t followed yet.
This market remains highly headline-driven, and we’re still getting frequent gaps based upon the latest in the saga known as Europe. As despair sets in and traders fear the worst, sell orders build up and we open lower. When hope arises that there’s light at the end of the tunnel, everyone wants to get invested as quickly as possible, and we see stocks jump. It’s been rather tiring, but it’s still in effect and so are the trading ranges (for the most part).
As we head into this week, it’s highly important to keep in mind that this is one of the lightest volume weeks of the year, usually only rivaled by the July 4th week. We have 3 1/2 sessions this week, with the market being closed Thursday in observance of Thanksgiving, and then open only a half day Friday. With the light volume, it’s imperative to become more selective and trade smaller, as the number of usual participants will be limited – and diminishing as the week progresses.
I’m looking to capture some short-term moves, both due to the holiday week but also due to the charts right now just showing a lot of indecision. In terms of the Broadcast, I’ll have them ahead of Monday’s, Tuesday’s, and Wednesday’s sessions, but then will take the remainder of the week off to spend time with family. I also don’t think the market will be worth trading on Friday anyway, for what it’s worth.
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: UNP, FLS, P, DVA, REXX, VRX, MAR, TDS, IMAX, X, CVD, REG
Swing Trading Candidates:
REG has pulled back from its highs the past few weeks, but in a methodical fashion. In recent days, it has stabilized, finding support at a prior resistance area. I’m watching for a break of the descending trend line as a signal to get long, so I’ll be a buyer if this stock clears $37.50 on its way back up. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
