Good evening StockBandits!
The market was poised for continued strength for much of today’s session as each of the indexes held positive for the bulk of the session. However, fatigue seemed to set in as we saw some profit-taking pick up in the final hour of the day to erase the gains and put an end to the NAZ streak of 8 consecutive gains.
Today’s late reversal isn’t yet something to be concerned about, for a few reasons. First, it wasn’t the kind of nasty selloff where technical damage was done. Second, the indexes finished mixed, with the NAZ and RUT lower while the S&P 500 and DJIA actually finished slightly in the green. And third, we still have former resistance levels which could still serve as support in the days ahead if this pullback continues, so I’m suspending judgment until we see more technical clues surface. Today’s action simply appeared to be a sign of fatigue, so I’ll wait to see how the market responds to it in the next couple of days.
A byproduct of today’s turnaround is that it left quite a few charts of individual stocks looking sloppy, so my focus for Tuesday’s session is narrowed as a result. The setups I’m eyeing are for day trades, as I’m content with the current stocks on the Hit List and those which are set up for plays tomorrow look best to me for hit-and-run types of trades.
We’re still in a great trading environment here, but the key to maximizing it is to lay low when setups are tougher to find and only get aggressive when potential plays become more prevalent. For Tuesday, I’m planning to take what the market’s offering here and otherwise be patient. I’ve rarely regretted doing that in times like this where the market is attempting to rest in the short term.
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: MWW, BLL, PTEN, MOS
Swing Trading Candidates:
NONE TONIGHT.
Bullish Watch:
GPC, RS, GTI, AMTD, WSM, ONXX, XEC, MWW, CTSH, CERN, BLL, MTW, INFY, NOR, OXPS, PTEN, MTL, GNTX, AREX, TRGP
Bearish Watch:
WYNN, MOS, HMIN, TSLA, JKS, CXO, TCO, CSIQ
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.
