Good evening StockBandits!
The market averages attempted to break out once again today as the S&P 500 and DJIA each crossed resistance zones, only to again get turned away for the second straight session. The NAZ did not participate, and remains the only one of the three to not achieve a new recovery high this week. After pulling back from the morning highs, a sleepy mid-day range kept prices confined for a few hours before final-hour weakness picked up some momentum.
Today’s reversal off the highs was a little more dramatic and pronounced than was Wednesday’s, and we saw the market go out on its lows of the sesson. The net changes weren’t particularly ugly, but the finish on the lows implies that sellers ran out of time before they ran out of inventory.
To see late-day weakness is a different character than what we’ve primarily witnessed of late too, since on many days we have seen a lift off the mid-day lows as the afternoon progresses. Nonetheless, it could be related to concerns over tomorrow morning’s jobs report as traders would rather raise cash and look to rebuy if necessary than face the potential of an adverse gap if the news is interpreted as poor.
One final note before getting to tonight’s video is that I did not trigger on ILMN today. My data provider showed the low on the intraday chart as $28.93, which is above my trigger price for the short, but the low on the daily chart as $28.65, which would have caused a trigger. All I can determine is that there was a bad print away from the market that never triggered an entry for me. Some of you asked about this today, and I wanted to clarify why it still shows as not triggered on the Hit List grid. I do still like the setup and it ended the day only a short distance from the trigger, but I have no position yet.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: WLL, DTV, VMC, CRZO, WYNN, FWLT, VPRT, MTL
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
REV, ADI, WLL, DTV, TRIT, WATG, VISN
Bearish Watch:
WFMI, PVA, BEN, VMC, BX, GMCR, WYNN, RRC, CRZO, ILMN, AIG, PEET, JEC, SM, FWLT, VPRT, VPRT, JEF, HOLX, KBR, MCK, APOL, LM, DVN, CNX, NOV, XOP, MTL
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
Only 6 candidates on the bullish watch list versus 27 on the bearish watch list. That’s quite a spread Jeff!
Have you tracked this ratio at all over different periods of time for any clues to future market behavior?
Hey Charles!
You know, sometimes it just gets lopsided like that I guess. I know that chart quality is in the eye of the beholder, but I really try not to make the lists lopsided, I just write down the ones which fall into each category and it turns out like that on occasion.
In this case, I think it’s that the market is failing to break out of the 3-week range, and although many stocks are at their highs, tonight’s charts just looked like many of them are tired and in need of some rest/consolidation.
So the bottom line here is that when struggling to clear the top end of the range, I’m more prone to recognizing short-term bearish setups for possible plays than to try and get long where the air seems to have gotten a little thin.
Does this help explain? Thanks for stopping by & go get ’em tomorrow!