Good evening StockBandits!
Today doesn’t look like much on the surface, other than some minor gains in the major averages. However, it was technically important as the S&P 500 finally posted a close above the early-November high at 1227. Tuesday’s failure to do so after trading above that level earlier in the session gave rise to some caution, but today the buyers nudged the blue chips past that threshold to produce a breakout on a closing basis.
The NAZ continued to climb beyond 2592 (cleared on Monday), and although it could use a rest it doesn’t seem ready to do so. It cleared resistance a few days ago, but until today didn’t have the sympathy strength of the S&P to help validate the breakout. We now have both, which gives the bulls continued hope as we head into the end of the year.
Interestingly, many stocks could still use some rest here, and there are also plenty which are in correction mode. I’m not at all opposed to trading the long side with a shortened timeframe heading into tomorrow’s session, and have a few bearish setups on my radar as well. So, we’ve cleared the trading ranges, but we can’t yet ignore their presence just a few points below current levels, as it wouldn’t take much for this market to fall back inside the range.
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!
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Video Stocks Discussed: VRSN, CVH, RHI, JNPR, CERN, CLD, ULTA, WYNN
Swing Trading Candidates:
WYNN has corrected from its peak but hasn’t been able to rebound since it stabilized two weeks ago. This one appears vulnerable to another selloff, so I’m watching for a break of support at the $100 level to trigger a short sale. As with all swing trades, my stop and target levels are on the Hit List here inside the Hideout.
Bullish Watch:
RHI, BIIB, ACOM, CPO, CODE, VRSN, CY, SODA, CCK, RIG, JNPR, BRCM, MWW, CVH, ETFC, WOOF, TTWO, CERN, CLD, MCO, ALXN, ULTA, ESRX
Bearish Watch:
MMYT, JKS, BORN, MICC, LVS, LO, FRO, ITRI, DWA, CMG, WYNN, HOGS, EC
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.
