Good evening StockBandits!
Last week we saw the market retreat from its recent resistance zones with selling pressure the first three days of the week followed by feeble bounce attempts on Thursday and Friday to close out the week. Although an attempt at a rebound was made in the last couple of sessions, we saw intraday selling which left the market in both cases finishing closer to its lows than the highs.
In the bigger picture, the wedges which have developed are still the main story. We will likely see moves in both directions take place until a meaningful move occurs, which will only take place outside the wedge one way or the other. Rather than attempting to predict which way that will be, it’s a better choice right now to stick with the setups which are showing some potential in the interim and then commit to the next meaningful move once we see the wedge get broken.
For this week, I’ll be taking a conservative stance in light of not only the recent market weakness, but also the fact that I’m expecting volume to taper off significantly as the week progresses toward Hanukkuh and Christmas. I’ll be focused primarily on intraday plays as a way to capture some short-term moves while effectively managing risk in a reduced-volume tape.
As a reminder these final days of the year, several other factors are at work which aren’t present the rest of the year. Those include portfolio managers exiting positions and adding others for the year-end books, tax-related selling for this calendar year, and of course declining volume at the end of the year as traders stand aside and tend to other matters (holidays with family and simply taking time off to gear up for 2012). With that in mind, it’s a good time to trade lighter and stay selective – I certainly will be.
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: LNCR, JKHY, DLTR, GRA, V, FOSL, P, DV, ACI, CAT, ROK, CTRP
Swing Trading (muti-day) Candidates:
NONE TONIGHT
[table “188” 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.
