Good evening StockBandits!
Last week we saw the indexes continue to try to claw their way back from the most recent selloff, but the bulls didn’t make a lot of headway. Not only was price unable to reclaim key levels, but volume was severely lacking on the upside as well. That hints at fewer traders participating in this rally, which is grounds for caution in case it happens to fail.
The post-holiday volume should return this week, along with the heavier volume which typically accompanies an options expiration week, so that may offer more clues for us on the technical side of things. One thing’s for sure though, which is that the character of this market has changed significantly since the highs were set in January, and it’s making for some tough sledding for those on the long side of the tape.
Those who have been caught on the wrong side have so far used each bounce as an opportunity to raise cash and dump shares, so it will be interesting to see if that occurs again this week. For now, the sellers are still in charge, the bulls are struggling to recover, and stocks are still building new bases. No matter which way this market moves, there will be opportunity for us as traders. At the moment, the shorter timeframes are the best place to be operating due to the ability to manage risk as key levels come into view, so that’s my focus heading into tomorrow.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: ACXM, CAGC, EL, MED, MA, BAC, UTX
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
ACXM, CAGC, EL, INCY, MED, ANN, TPX, UAUA, PVX, GRA, BEXP, LNCR
Bearish Watch:
ABV, AMSC, BA, FSYS, MA, FWLT, BAC, FDX, UTX, SINA, GES, COF, FAS, TXT, TIE, VAR, RL, MRO
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
