Good evening StockBandits!
The major averages put in another day of rest today, but the way it unfolded was actually quite constructive. Rather than simply sit in a narrow intraday range and churn, stocks started out weak and found some additional selling after the opening bell. But the buyers stepped in and the bounce became a reversal to the upside, sending the market back to flat by mid-day. A mild pullback was followed by a strong surge of buying this afternoon, suggesting that this market just doesn’t want to stay down.
Stocks are acting like they want higher, and many of them (including the NAZ & RUT) saw early shake-out types of moves today that were eventually resolved with net changes of minimal significance. While that may not seem like much, it shows that some weak hands dumped shares and more buyers stepped in to pick up the slack. I noted last night that each day of rest is meaningful, and today’s intraday price action lends support to the notion that this is merely a rest phase before another possible attempt to head higher.
Quite a few individual stocks are looking bullish here, and my Bullish Watch list below reflects that. There are a number of them constructing patterns, while some appear ready to go any day now. I’ll be focusing on the latter for tomorrow’s session, while keeping tabs on the former as potential trade candidates in the days ahead. This is the importance of maintaining watch lists, as it gives us go-to setups on which to place our attention so we don’t have to chase moves. Staying on top of them and being prepared allows us to execute each day, rather than make decisions which are not well thought out. If you’re not keeping watch lists like this, get started now, as it will help you significantly.
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: GLD, SHLD, ATI, MAN, GRMN, TSLA, MGM, ALB, STLD, VAR, NFLX, CRZO, HPQ, POT, APA, VRX
Swing Trading Candidates:
POT has been dominated by a downtrend line in recent months, but lately has stabilized to carve out a higher low. Currently the stock is within spitting distance of clearing the trend line, which would mark a change of character and possibly invite a short-squeeze type of advance. I’m looking to buy this one for a swing trade if it can clear the trend line with a push through $44.50. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
APA has consolidated over the past week to hold the recent gap, thereby setting up a short-term bull flag-type pattern. I’m watching for an upside resolution to trigger a buy at $98.50, and ultimately will watch for a push toward the key $105 area in the days to come. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
VRX has shown some excellent recent price action by balancing strength with rest phases. Here the stock is consolidating, and an upside resolution with a trend line break at $47.25 will trigger a buy for me as this stock heads for higher ground. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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.
