Good evening StockBandits!
The market took a very small step back today with a weak open which was followed by only a partial gap fill. As a result, the indexes finished in the red, although not by much.
We’re still holding above the recent breakout areas and still not far from highs, which leaves the indexes in good shape to digest recent gains and possibly go for more soon. That’s right along the lines of the stairstep-type of rally we’ve been in since December 1st, which has to leave the bulls feeling somewhat comfortable.
Overall, this market remains in good shape from a technical standpoint, and the bears are still on the run. The dips have continued to be brief and shallow, which shows that buyers are still stepping in on even minor weakness. As long as that remains the case, and particularly if this market can continue to base after it makes new highs, it could easily perpetuate this uptrend.
My intent is to continue trading the setups as they come along, without chasing strength. If there’s one nuance about this rally, it’s that we aren’t seeing runaway strength. So patience is a virtue especially now.
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: KKR, YOKU, ALV, COH, MOLX
Swing Trading Candidates:
MOLX has put in some rest since its last run higher, and this one may be gearing up for another move. I’ll be a buyer if this one can clear the upper trend line of the bullish wedge at $27.70, and will use the lower trend line as a stop. 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:
EBAY, NG, MOLX, ADSK, LBTYA, JCI, VSH, GTI, KKR, JAZZ, GDP, IPXL, YOKU, SWK, SM, HOG, CSX, JNPR, ALXN, SFSF, SBGI
Bearish Watch:
TCK, WHR, ALV, COH, TSRA
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.
