Good evening StockBandits!
With stocks having spent the past few days still rather oversold, conditions were ripe for a bounce today. For a while, that’s exactly what we saw as the buyers put cash to work and the indexes headed north ahead of the FOMC announcement. Once the news was out, the usual back-and-forth indecision followed. The market tagged the session highs, and that was it. As the final hour unfolded, so did the rally, and stocks gave back their gains to finish nearly unchanged on the session.
Although the net point changes were insignificant, today was another psychological win for the bears. The bulls had a shot at producing a bounce and recovering some respect, but the late-day give-back put the ball back in the sellers’ court. The index charts now look more like a sloppy consolidation has taken place over the past few sessions, so another leg lower could quite easily begin from here. Additionally, quite a few charts have taken on a bearish look with bounces over the past few days which are difficult to trust. The lack of upside volume and follow through opens the door for more short-term weakness, so caution is still advised when trading the long side for now.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: ASH, FUQI, ATI, CERN, UA, APOL, OLN, LTD, CLI
Swing Trading Candidates:
OLN has been trending lower and has struggled to bounce at all since changing directions in September. Here it is resting on short-term support and looks vulnerable to another leg lower. A break of $14.97 will trigger a short sale for me.
LTD turned lower last week and has only been able to consolidate. Earnings are due out in 2 weeks, so this one still has time to head lower out of this resting phase and possibly test the prior low. I’ll be shorting this one if it moves down through $17.50.
CLI has been largely range-bound for the past couple of months, save for a failed breakout attempt in September. This stock is now leaning on the lower end of the range and could easily break down. I’ll be looking to short this one if it undercuts $29.60 to start a new leg down.
Bullish Watch:
GY
Bearish Watch:
AONE, CERN, WYNN, AM, PVH, JEF, NTRS, CA, BXP, BIIB, CMG, DTG, UA, TXI, ASH, FUQI, APOL, OLN, ATI, MMM, APD, VFC, AWI, UNM, LTD, CLI, SCHN
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.
