Good evening StockBandits!
For a Fed day, today was about as uneventful as they come. The indexes moved slightly higher this morning and gave some back in the afternoon, finishing not far from where they began the day. Momentum was fleeting, and we spent the middle portion of the session in a very choppy, tight pre-FOMC range. Indecision was prevalent all day though, as even the afternoon selling was followed by a bounce into the closing bell.
Often times, the market needs an extra day or two to really digest the FOMC and make a move, and today we saw no clear response to provide with us with expectations for tomorrow’s session. Perhaps we’ll see better momentum surface tomorrow in one direction or the other, so I’ll be watching for a multi-day high or low to arrive to signal that.
Tonight in looking through a great number of charts, I saw many stocks which are indicating a need for further rest. With no interest in forcing trades out of sloppy bases, my list for Wednesday’s session is rather limited – and that’s not so bad. There are some candidates I’m considering for plays on the long and short sides, as well as day and swing trades to help diversify timeframes.
One final note I’d like to make is that with it being near the end of the year, there’s plenty of noise about where the market will finish and how these next couple of weeks will play out. Some say we’ll ramp higher, others say we’ll see selling pressure as funds move to lock in profits. Personally, I don’t care which way we go or if we move at all. What I want to remind you of is that it’s always important to assess the current situation from a technical standpoint, and right now we’re sitting near highs within an uptrend. I’m not interested in fighting the trend until signs emerge that it’s ending, and thus far we don’t have that. So, stick with what you see on the charts, and leave opinions aside for the talking heads on TV. You and I will only make money trading when we take action on quality setups with defined risk and good potential… not when we marry ourselves to a thesis and then hope it plays out.
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: GTI, ALXN, AGU, CSIQ, ATU
Swing Trading Candidates:
ATU recently crossed a key level at $24 and gathered momentum quickly to the upside. Since then, it has put in some needed rest, but today it began to turn higher within its base on improved volume and may be ready to start another leg up. I’ll be a buyer if this one clears $27.85 to confirm this bull flag. As with all swing trades, my stop and target levels for this trade are on the Hit List here inside the Hideout.
Bullish Watch:
WCC, DRIV, LNCR, GTI, XEC, WOOF, CERN, ALXN, ESRX, KKD, BLL, ATU, NAK, GNTX, JCI
Bearish Watch:
WYNN, BIDU, AGU, HCN, MOS, TCO, LVS, 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.
