Good evening StockBandits!
This morning we saw another strong open on the heels of Wednesday’s big rally, as the buyers apparently went home last night wishing they had more stock on their books. They wasted little time again today in putting cash to work, and by the closing bell we saw 1% gains across the board.
At this stage of the rally, it feels as if stocks can only move higher. However, as traders we know that’s a dangerous mentality to adopt. The bigger picture is still showing the indexes in trading ranges, although each are now facing key levels after moving to the upper ends of those ranges. We just saw support get respected early this week, so if resistance happens to hold in the same manner, this would prove to be a better spot for booking profits than in adding long-sided exposure.
Tonight there are fewer stocks on the radar heading into Friday’s session, as the market ramp has eliminated many bearish setups and left many bullish setups short-term extended. Rather than short strength or chase stocks which have already made big runs, the prudent move here in my opinion is to shorten trading timeframes and exercise some discipline while we wait to see whether or not the range will persist (read: resistance holds). This would be a logical spot for some profit-taking to kick in, but instead of becoming overly anticipatory it’s best to simply raise our level of caution and participate in the short-term moves as we close out the week.
**As a reminder, my wife & I are expecting a baby in the next 3 weeks and our first arrived 4 weeks early. So, I could drop off the radar anytime when this baby decides to arrive. If I do, fear not – I will resurface with an update shortly after!
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: RVBD, MWW, HANS, BID, TSL
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
RIMM, ORLY, CODE, MEE, NG, NOV, RIG, TWI, RVBD, MWW, MSCC, HANS, SIG, BID
Bearish Watch:
BIDU, MCP, TSL, MOS
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.
