Good evening StockBandits!
Last week’s back-and-forth action made for a few lively sessions as the pullback from the recent highs continued before a relief bounce kicked in. Overall though, both the NAZ and S&P 500 finished the week unchanged, finishing at the exact levels on Friday as they did the previous week.
On Friday we saw the indexes recover from slightly in the red to post modest advances, none of which were meaningful on a technical basis. The battle here seems to be more psychological than anything, as the bears have been pummeled since August. At the same time, it’s simply a fact that eventually the bulls will tire out and need some kind of a rest, and this could be the start of that. The big-picture trends remain in good overall health, and this pullback could eventually lead to more upside once it runs its course. Currently, the bounce of the past couple of sessions is being weighed, but the verdict is still out as to whether or not it will stick.
We may or may not get any clarity this week, as not only will it be a holiday-shortened trading week, but the volume will most likely be about as light as it gets. That’s typical during the week of Thanksgiving, so that’s one less technical element we will be able to rely upon when evaluating the price action. The market will be closed on Thursday for Thanksgiving, then will only have a half session Friday with an early close of 1pm ET. Add to the mix the fact that many traders will be long gone by Wednesday afternoon, and the stage is set for some drifty price action unless some big news surfaces.
So, with the expected light volume and the shortened trading week ahead of us, it’s a good reminder to make every trade count. There are several setups I’ve got my eye on for Monday, in both directions and on multiple timeframes (both day & swing). As the week progresses, I’ll become even more selective, knowing that momentum may be harder to come by.
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 4 weeks, and our first child arrived 4 weeks early. So, ideally this baby holds off a few more weeks, but if I happen to fall off the radar 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 Monday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
VSH has trended higher for several months, and more recently has put in some needed, healthy rest with the formation of this large pennant or wedge pattern. The stock is attempting to break out, but needs some stronger volume to pull it off. I’ll be a buyer if this one can clear $14.05 to make a multi-day high, ideally on expanding volume. As with all swing trades, my stop and target levels for this one are on the Hit list here inside the Hideout.
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:
BGC, KMX, BMRN, CODE, DNR, RS, TSLA, IMAX, BEXP, IVN, AMCN, CVG, CY, BEAV, QCOR, CAVM, VSH, CROX, OSG, RAX, SWN, WFC, ATHR, ROSE, MDR, KND
Bearish Watch:
V, MON, CF, LNCR, OFC, PSA, CSC, ADM, MMYT, AGU
The Hit List contains stop and target levels for my swing trades.
