Good evening StockBandits!
Last week we saw early downside on Monday as the market attempted to add to the previous week’s selling pressure, but a reversal kicked in which carried the indexes higher for the remainder of the week. Thus, the recovery bounce from the recent pullback is still in effect, leaving the door wide open for both the bulls and bears to take control.
If the bulls are able to keep the pressure on, we could climb right back up to the October highs. However, if they relent, the bears could realize a lower high on the daily charts and start calling for a possible trend change.
At this point it’s still too early to call, so the best bet is to stay on our toes and continue playing the setups which come along. Earnings season is starting to wind down a bit, which should present more swing trading opportunities for us in the weeks ahead. I’m looking forward to it, as we’re getting some increased volatility and that means bigger moves are starting to arrive.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: SWK, HGSI, WHR, BXP, MON, MICC
Swing Trading Candidates:
MON broke the $70 area a couple of weeks ago and continued lower. Since then it has bounced on weaker volume back up to test former support, and Friday was unable to reclaim it on a closing basis. This looks like a failing bounce within a downtrend, so I’m watching for a break of the small rising trend line to trigger a short sale at $68.70.
MICC turned sharply lower from its October high and broke key support on heavy volume. Last week this stock bounced back on light volume to test that former support level from below, and could not reclaim it. The bounce also has created a bearish rising wedge pattern, which if broken to the downside could spark another wave of selling. I’ll be using the lower trend line at $66 as my pivot for a short sale if broken.
Bullish Watch:
V, PNC, TNB, HS, SWK, GOL, TUP, PRGO, HGSI
Bearish Watch:
WHR, CPT, CNW, NTRS, MCO, BXP, MON, SOHU, APOL, GRMN, MICC, CLI, FSLR, AEM, LEAP
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.
Hi Jeff :
Please comment if possible. Now a days lot of noise about dollar trade. What is your Bandit’s view about dollar trade ?
I seach a little and found out two ETF related to dollar trade ( UUP , DBV ) but those are not leverage. Do you know any leveraged ETF for dollar trade ?
Thanks,
-A
Hey Abdul!
Great to see you here and thanks for your comment.
You are correct, there has been a lot of noise regarding the dollar and all the factors surrounding it (which I will not go into). Aside from UUP and UDN, I am not aware of another dollar-tracking ETF to trade. They move very slowly, so some greater leverage would be helpful if you were looking to trade them.
I have just watched it for directional reasons only, as UUP has been moving inverse of SPY, so when UUP turns higher the SPY has been turning lower. In my view, that’s a valuable indicator for trading SPY. UUP has not been worth trading in my opinion due to how slowly it moves. I should note that leveraged currency trading is available in the forex market, although that’s a whole other world.
Hope this helps!
Jeff