Good evening StockBandits!
Stocks gapped up this morning with a shot at rebounding once again from the short-term pullback, but the early strength was sold and the indexes settled into a quiet range ahead of the FOMC announcement. Once the news was out, traders had nothing new to inspire buying, so the market simply resumed its slide lower and new session lows were seen into the afternoon. We saw a minor lift off the session lows into the closing bell, but essentially the bulls squandered an opportunity today.
My watch lists have been cleared out considerably in the past couple of days, which narrows my focus in the near term and opens the door for new setups to build in the days ahead. Periodically that happens as building patterns get negated with market declines, or those which were looking ripe for moves simply back away from their key levels. Rather than get annoyed by it though, I just keep focusing on the setups which look ready for moves and give those my attention.
Expectations for a Thanksgiving rally were squashed a few weeks ago, and it could be that the oft-expected Santa Claus rally is being treated in a similar fashion. There are some air pockets down below which could get filled if the buyers prove unable to gain a foothold, so it’s an important reminder to stay flexible and raise cash upon technical breakdowns. I’m already in cash tonight, but wanted to mention that in case this market is carving out a lower high on the daily chart.
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!
Video Stocks Discussed: DLTR, APKT, VRX, N, FOSL, MOS, RIG, IPGP
Swing Trading Candidates:
NONE TONIGHT
[table “185” not found /]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.
