Good evening StockBandits!
The bulls defended the low end of the range over the past two sessions, respecting Friday’s low and producing a solid bounce from areas of support. Today’s upside was impressive, as the market never backed off. We saw steady strength into the early afternoon, followed by a few hours of quiet basing action into the closing bell. The blue chips led the way with upside breakouts, as the S&P 500 and DJIA each reached new 52-week highs. Meanwhile, the NAZ and RUT posted solid gains as well, but remained beneath their recent highs.
So while we did see strength across the board today, we’re still getting mixed signals when it comes to seeing unified new highs in each of the indexes. Small caps continue to lag at this point, so eventually we’ll need to see the NAZ and RUT play catch-up, or they’ll likely drag the S&P and DJIA back down with them.
The uptrends are still intact for now, although the past few sessions haven’t been easy ones to trade. Friday’s persistent weakness implied more selling to come, yet we’ve only seen strength since then. Today’s action suggested a complete lack of concern for lower prices, so we’re seeing a little of everything right now. At some point, the signals will become more consistent, but for the time being it’s still wise to stay on our toes and be prepared for anything.
Tonight I’m going with the written format rather than the usual video, as I’m still battling a cold right now and coughing too much and my throat is too sore to speak. Therefore, my notes will be on the charts themselves tonight. Hopefully in a day or two I can return to the show-and-tell video format. Trade ’em well on Wednesday!
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
LBTYA, DIS, BORN, ACOM, MCP, IDCC, ZAGG, FOE, ATML, CAT, IVN, AMAT, GRT, AFL, RJF, VRI, BRKS, NVDA, NANO, TXN, SGY, AA, RDC, RKT, IPI, STEC, EAT, BHI, GRM, NWL
Bearish Watch:
MCD, SLAB, RVBD, DECK, BWA, DRIV
The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.
