Good evening StockBandits!
The indexes moved briefly into positive territory this morning, but the momentum was short-lived and profit-taking kicked in. Stocks trended lower for the remainder of the session, although they didn’t give back significant ground. The selling was orderly and limited, and did nothing to threaten the uptrends.
Today’s pullback may see some follow through, as we still have an unfilled gap from last week extending down to Wednesday’s closing levels. That would be a move to the 2540 area for the NAZ, and 1197 for the S&P 500. Gap fills are common and healthy when they occur, as it’s just a natural way for the market to fill in the blanks (no pun intended). So, it could be that we see some profit taking down to those levels or beyond, and we’ll just have to wait and see where this takes us. The trend is still up across the board though, and the key to maintaining the uptrend will simply be whether the buyers step in again on cue once the pullback runs its course.
Setups for tomorrow are a bit limited tonight, as I noticed quite a few names putting in bearish engulfing bars. The NAZ did the same thing today, but after a pair of narrow range sessions, that’s not difficult to accomplish. Regardless, I’m wanting to respect the need for a pullback here. Although many of these dips may result in good long-sided entries once the selling abates, I’m generally staying selective heading into tomorrow’s session to exercise some patience.
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 Wednesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
LZ looks to be in the midst of a trend change here after a big breakdown and a potential failing bounce. I’m looking to enter this one for a swing trade on the short side if it undercuts $107 to mark a multi-day low. Today’s decline came on increased volume after a bounce on declining volume essentially filled a gap from a few weeks ago. As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.
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:
MIPS, IGTE, BIIB, SVVS, CODE, CBOE, MCHP, WTI, LFT, FLR, PPDI, DPZ, IRF, TRW, VRUS
Bearish Watch:
PFCB, VFC, LZ, V, AUXL, THRX, EAT, ECL, THOR, OFC, MRO, ADM, MELI, HMIN, PWR, JOE
The Hit List contains stop and target levels for my swing trades.
