Good evening StockBandits!
The new week started out with some fresh buying, despite the indexes ramping last week. With the market already short-term overbought (after being oversold, of course), more positive news out of Europe provided an additional lift and some early strength which was added to until mid-day. And although we finally saw a little profit-taking kick in this afternoon, all in all it was yet another positive showing for the bulls who continued to push their short-term edge.
Both bulls and bears are driving this action right now, as those with cash on hand are feeling left behind with each of these opening gaps, while at the same time there’s some underlying buying built in as shorts race to cover on virtually any pullback to free themselves from the pain of getting caught on the wrong side. The news flow is suddenly more positive as well, which has kept the cycle going as the indexes retrace what they had given back ahead of Thanksgiving.
The averages are back around some important levels, which there is no shortage of on the way back up, and now the question arises whether this run is finally exhausting itself a bit. Today’s afternoon pullback helps to make a case for that, but it’s a tough spot for initiating shorts in anything other than what has already been showing some relative weakness. Stated otherwise, I have no desire to short the overall market here, although some opportunities exist in individual stocks which have shown a recent propensity to lag or sag.
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: CAT, NFLX, SLB, BIDU, BHI, CF
Swing Trading Candidates:
NONE TONIGHT
[table “179” 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.
