Good evening StockBandits!
The indexes posted bookend losses last week with sharp declines Monday and Tuesday before solid rebounds took place Wednesday and Thursday. Friday saw another downside gap and continued selling into mid-morning, but the buyers emerged again to lift the market from its lows and cut the day’s losses substantially by the closing bell.
Last week was constructive, as we saw not only a pullback take place after another sharp rally from the prior week, but we also saw a couple of other developments as well. Some recent gaps were filled, and dip-buyers reminded us of their presence. The indexes pulled back to test some important areas, and now are poised to either rest further or possibly head back up to challenge the October highs.
Europe remains a fixation for traders with the day-to-day drama, but from a technical standpoint, the market seems to be retaining the change of character from early-October. Once this rest phase and/or pullback is completed, there’s a fair chance a higher low on the daily charts will have been established for the indexes.
Individual stocks are looking bullish as well, with some higher-quality patterns surfacing than what we’ve seen in recent months. Bearish charts are few and far between at the moment, and while that’s subject to change, for now the market isn’t looking easy to fade.
Last week I entered my first swing trade since August, and it left me with my first overnight position since July 24th. Other candidates may pop up soon, so I’m encouraged by the overall price action. We’re still seeing some frequent gaps, but the market has done a better job in recent weeks of putting in rest rather than producing all-out reversals once it grows exhausted.
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: TEX, JNPR, PFCB, PCAR, R
Swing Trading Candidates:
NONE TONIGHT
[table “161” 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.
