Good evening StockBandits!
Last week finished on a quiet note, just as expected, with Friday’s net changes in the indexes mixed and minor. The DJIA added a few points, while the NAZ, RUT, and S&P 500 each finished just barely in the red. Traders weren’t interested in making any big moves ahead of the long holiday weekend, so the bulls were able to prevent any big slips and the bears continued their hibernation.
In the week ahead, anything’s possible. Quite a few traders are expecting more drifty action, but with such low expectations for a sizeable move, that could be exactly what we get. I’m making no predictions – as usual – as to what’s going to happen, but I am reminding myself the trend is up and this market isn’t acting overbought. We’ve seen quite a few narrow-range days lately, which indicates no big struggle at the moment between buyers and sellers. It’s common when the market gets toppy to see big reversals and heavy volume on churning days, and we have yet to see that. Therefore, it’s certainly possible we see this market ramp a bit more into New Year’s to cap off this impressive run which began in September.
When it comes to individual stocks, the consolidation we’ve seen lately has helped to create more bases, and those are going to be on my radar as we head into tomorrow’s session. Volume should improve as the week goes on, but keep in mind we’re right between two major holidays and therefore we have fewer players at their screens and the continued presence of the year-end factors I’ve noted throughout December. Stay on your toes if you’re trading this week, because we don’t always get typical price action right here at the end of the year.
By the way, I’m traveling at the moment to spend some time with family, which is why I’m utilizing the written format instead of the usual video in case you were wondering. Hopefully you’ve been able (or will soon be able) to spend some time with those you love the most this holiday season!
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Monday, and as you see I’m keeping it pretty light. If volume is able to kick back up tomorrow, I may consider some swings in the days to come, but at the moment I’m looking to day trade right now since it’s the holidays and we’re seeing such light activity in the market.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
MGM, SLV, VALE, ATML, SLW, GDX, GPS, NFLX, ABX, SLB, MON, LDK, MEE, APC, TCK, FNSR, MCP, CCJ, ISIL, APA, BYD, VMW, BMC, STEC, JKS, IDCC, MELI, PEI, NAK, BEAV, DHX, RP, BSQR, YOKU
Bearish Watch:
BIDU, UAL, MCO, MA, DRI, CMG, SOHU, TSLA, BVN
The Hit List contains stop and target levels for my swing trades.
