Good evening StockBandits!
Today we saw what’s generally referred to as “backing and filling” in trading lingo, which means we saw the market back up (retrace some of its recent steps higher) and fill in some gaps. It was a weak day, no doubt about it. Pre-market, the futures spiked higher to indicate a gap up, then quickly turned negative ahead of the opening bell based on more European comments – this time of the negative variety regarding Italy.
With traders largely already focused on Europe this week (and in the past several weeks for that matter), the market responded to those comments as stocks got sold steadily throughout the session. We saw an afternoon bounce attempt, but it failed and new session lows were made by the closing bell.
Last night we had seen a number of bullish patterns emerge on the heels of a big post-Thanksgiving rally and then a few days of rest. Today some of those flags and pennants were voided with downside moves, while others are clinging to the lower ends of their consolidation zones for the time being. A little stabilization here would return them to focus, but for tonight my watch lists for imminent moves has been reduced. So be it, that’s what trading is all about…locating setups and then waiting for them to confirm. If they don’t confirm, no harm, just wait for more setups.
There are some setups I’m eyeing for tomorrow, although for intraday moves. That’s largely due to the fact I’ll be presenting live in Dallas in conjunction with TC2000 the next 2 days, so my attention will not be on the market all day tomorrow. Nonetheless, there are a few setups which could provide quick moves in the morning, so that’s where my focus will be on Friday.
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: DLTR, JKHY, SIMO, SLXP, GRMN, AGU, VNO, BAS
Swing Trading Candidates:
NONE TONIGHT
[table “182” 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.
