Good evening StockBandits!
Another session resulting in minor net changes for the indexes today left few surprised, as volume continued to run well below average. That points to an ongoing lack of participation here as we approach the end of the year with only two sessions left before New Year’s. It’s resulting in extremely narrow ranges, no momentum, and reduced liquidity – all of which leave me less than interested in doing much beyond a handful of day trades.
Technically, this market is set up well, as we’ve seen rallies and bases in recent weeks to prevent prices from getting too stretched. That could easily allow another push higher once greater participation is here, but at the moment, it seems the market is on hold until next week when more traders are likely to be back at their screens. Stated otherwise, it’s still a bull market, so I’m not eager to fade it, but without better upside momentum it’s best to be selective here while we wait for more movement.
Heading into tomorrow, there are a handful of names on my radar – all of which will be day trades if they happen to trigger entries. I’ll be keeping my initial risk at 1% and looking for moves of 2-4%, just looking to grab the initial moves through the levels specified below and then I’ll head back to the sidelines.
I typically take this entire week off (as I noted last night) for the very reason of light volume and a lack of movement, so rather than try to press new trades and load up on a lot of positions, I’m looking to just grab a piece of the action and then get back out. I just don’t trust the moves to last long in this kind of environment, and the past several sessions have offered plenty of reason to feel that way (aside from experience from years past).
This will be the final Broadcast of 2010, as I don’t plan to trade on Friday. I had expected to see volume improve as this week progressed, but that didn’t happen, so I’ll take my cue from the market that it’s likely best to take a long weekend and prep for 2011. I hope 2010 has been a good one for you in every way, and when it comes to trading, let’s aim for the sky in 2011!
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:
SLB, RVBD, PCX, JRCC, DHX, BYD, BKD, BEAV, BID, IR, MGM, LVS, SPRD, ATPG, RAX, ACI, STEC, EW, KKR, CAM
Bearish Watch:
CMG, CRM, CSTR
The Hit List contains stop and target levels for my swing trades.
