Good evening StockBandits!
The weekend apparently wasn’t quite enough down time for the bulls as today they returned without enthusiasm. An opening gap to the downside was greeted with enough buying to lift the indexes slightly from their lows, but that was the end of the excitement as the major averages finished mixed and little-changed on the day.
While action like today’s is uneventful and the churning movement of stocks makes it easy to overtrade, it is a healthy way to digest gains. We saw similar action on Friday after Thursday’s big pop, and this is just a natural way of movement after a big run. The dip-buyers are still confident enough that they’re preventing declines from becoming harsh at all, and any remaining bears have also been quick to cover shorts at the first sign of weakness in order to get back to the sidelines and wait for another opportunity. That combination is keeping a steady bid beneath the market, which essentially has made the decision between a flat and a strong market one for momentum players. On days when they’re not active, we’ve finished flat, and when they’re in gear we run.
At this point, I’m content to let the market rest a bit and play the shorter timeframes (day trade) on Tuesday while waiting for more lively activity or more mature bases to initiate trades from. There are some intraday opportunities, but tonight I’m not seeing much in the way of setups that look poised for multi-day moves from their current patterns. Another day would do wonders for many charts, particularly if it’s another day of rest, so let’s see what happens.
As a reminder, for a few weeks I’ll be utilizing the written format of the Broadcast as we’re in the process of moving and therefore without the equipment I use for recording the nightly video. Once I have my new office set up, I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT
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:
IGTE, DRIV, MAR, SOHU, SCSS, NTGR, BIDU, FORM, OAS, BIIB, WMS, RRC, MCP, ORLY, RIMM, CCE, GNK, LYB, DNR, RS, VRSN, TSLA, JKS, BORN, IMAX, JOBS, BSBR, BEXP, WTI, KIM
Bearish Watch:
V, EAT, THOR, OTEX, MRO, ADM, CYT, HMIN
The Hit List contains stop and target levels for my swing trades.
