Good evening StockBandits!
Having just completed a week of upside in V-shaped, decreasing-volume fashion, the market could quite easily have seen some profit-taking kick in today. That didn’t happen though, as the Monday morning gap to the upside found solid follow-through as the bulls stretched their legs once again. Today’s strength brought a breakout in the DJIA to a new recovery high, while the NAZ and S&P 500 each moved back toward their October highs as they finished at their best levels of the session.
The market is quickly becoming short-term overbought once again on the heels of a 6% bounce from the lows of just last week. At the same time, the buyers have momentum, and that deserves our respect. My plan is to stick with the setups that come along while being careful not to chase bullish setups unnecessarily higher, just in case a rest kicks in (which we badly need). Over the past few weeks a trading range has emerged, and as we near the upper end of it in the NAZ and S&P 500, it’s wise to exercise some caution on the long side – especially after this bounce.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
–
Video Stocks Discussed: CVX, ASBC, BEC, MON, SWK, CFN, HGSI, CNW, GRMN, RTI, JNPR
Swing Trading Candidates:
RTI has bounced in recent days, but the upside has been limited and volume is diminishing. The past 2 days, this one has finished well off its session highs, which is another indication that it’s struggling to participate in the current market bounce. A turn lower from here would undercut the rising trend line and pave the way for another leg lower for this stock which is already in correction mode from the September highs. I’ll be going short with a break of $19.35.
JNPR has failed to participate in the tech rally and instead is acting quite poorly here. A break of support at $25.25 could spark further selling and a move back down toward lower levels, so I’ll be going short if and when that break occurs.
Bullish Watch:
TNB, WCN, RAI, NFLX, HS, SWK, CFN, HGSI, BCSI, CVX, ASBC, G
Bearish Watch:
CNW, ABFS, MON, GRMN, BG, RTI, JNPR, BEC
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.
