Good evening StockBandits!
The indexes stretched to new multi-year highs on Friday (with the exception of the DJIA), capping off another strong week. Recent trading ranges were left behind for the NAZ and S&P 500, reminding all that the trend remains up and the buyers remain in control.
It’s no surprise that given the multi-week trading ranges we just broke out from, the stocks on my radar at this point are nearly all bullish. The idea is to trade with the proverbial wind at your back, or with the trend, so that’s my aim at the moment. It also happens that with all the strength out there, bearish candidates are simply more sparse at the moment. Regardless, there are some nice setups I’ll get too momentarily which are on my radar for plays on Monday and this week.
I expect there to be more good setups as time goes by, so we’re in a nice environment here to do some trading – no matter which direction this market heads. The next several months are likely to be that way, so even though the “easy” money may have been made for the current rally to investors, there will be many opportunities to capitalize on for those of us who are trading.
With it being December, I have to make mention of a couple of factors which just don’t play a role for the rest of the year which are in play over the next few weeks. Tax loss selling is the biggest one, as are index rebalancing and quarter-end and year-end window-dressing for funds. That’s a lot to take in, but essentially it’s just a mixture of motives for buying and selling which don’t come together simultaneously except for December, and particularly later in the month. So we may have another week or two of “normal” trading activity, but as the holidays approach, it’ll be wise to shore up exposure for a few days. I’ll remind of this in the next few weeks, but wanted to put it out there now as we head into the final 2/3 of the month. If you typically take some down time around the holidays anyway, it’s nothing to be concerned about.
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!
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Video Stocks Discussed: JRCC, CTSH, BLL, CVH, RS, MTW
Swing Trading Candidates:
RS exhibited exceptional momentum recently after clearing a trend line, and since then the stock has pulled back only slightly. Instead, it has been basing in a bull pennant pattern, and I’m watching for a push through $50 to signal the start of another leg higher. I’ll be using that as my trigger to get long. As with all swing trades, my stop and target levels for this trade are on the Hit List here inside the Hideout.
MTW has rested over the past few sessions to digest its recent run, and may be gearing up for another push. I’m watching the upper trend line of this tight pennant pattern at $13.05 for a break to trigger a buy. As with all swing trades, my stop and target levels for this trade are on the Hit List here inside the Hideout.
Bullish Watch:
DRIV, PVH, SKS, GES, RS, TEX, GTI, QCOR, WSM, VMC, RIG, AA, CVH, CTSH, ULTA, TER, KKD, BLL, DANG, JBHT, INFY, MTW, CMI, NOR, LEN, JRCC, SLAB
Bearish Watch:
MOTR, TSLA, LVS, FRO, WYNN
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.
