Good evening StockBandits!
Last week we saw some quiet basing action above prior resistance areas, with some modest strength on the heels of the breakout from the previous Friday. Then we saw yet another breakout to new highs take place on Friday, sending the indexes into the weekend each at fresh 52-week highs.
The steady stair-step style uptrend continues to lift this market, and stocks are acting well. We’ve seen brief periods of rest along the way, but very few pullbacks. The dips we have seen have been modest and short-lived, as shorts rush to cover on weakness and the buyers step back in to put cash to work at virtually any lower prices. At some point this type of price action will morph into something different, but for now, the trend is still up and there’s no technical reason to fight it.
Quite a few stocks are behaving well on a technical basis, and I expect that to continue for a while. The only difficulty at this point is finding stocks which have based a sufficient amount of time to warrant a multi-day play (vs. a day trade), yet which are still participating in the market advance. More are emerging daily though, and as they arrive I’ll certainly have them here. For Monday, there are several plays I’m eyeing, and as usual, I’ll look to take them once they clear the levels highlighted in tonight’s video.
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: MOLX, ADSK, AA, RDC, WLT, MON
Swing Trading Candidates:
MON has put in some healthy rest for almost two weeks as it consolidates here near its highs. A push through the upper trend line would take place at $75.80, so I’m looking to get long this stock if and when that breakout occurs. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
Bullish Watch:
ATPG, ADSK, RCII, IDCC, APKT, PAY, ADTN, KSU, LBTYA, LRCX, XXIA, JAZZ, LEN, ARMH, SFY, CHK, SOL, LDK, CSX, BRKS, MON, SWK, AA, RDC, MOLX, HUN, CXO, WFR, HES, EL, PXP, CCJ, HSC, CRUS, RL, SFN, KLIC, EP, PTEN
Bearish Watch:
WLT, SLAB, VMW, SSRI, AG
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.
WLT is not fooling around. wow.
Ben