Good evening StockBandits!
A gap higher found more buyers late this morning as the NAZ pushed to new recovery highs, but that marked the best levels of the day as we worked our way lower for the remainder of the session. The afternoon pullback filled the gap and left each of the indexes in the red by the closing bell.
The big question on everyone’s mind tonight is whether today was the top. I’m here to declare…..that I don’t know! As much fun as it would be to go out on a limb and say yes or no, the fact of the matter is that we don’t yet have enough technical evidence to suggest a break is taking place just yet. We do know this market is quite extended and therefore due to correct, but as of yet the indexes have simply moved laterally. The NAZ remains within its uptrend channel, and the senior indexes are caught in short-term ranges, so we simply can’t declare a change of character just yet.
What we do know is that today’s move smelled like fatigue, and that’s just a warning flag at this point when it comes to new buys. I’ve been adjusting my stops regularly on swing positions, and otherwise have been very selective. Tonight there aren’t a lot of names to point out, which is another reminder that at times laying low and letting the market reveal more of its hand can be of great benefit, so while I’ll look to take a few plays tomorrow I’m also willing to wait if need be. Stated otherwise, there’s no need to force entries here, so don’t.
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: DRIV, ROVI, SLG, CAT, FST, PXP, NOV, HAL
Swing Trading Candidates:
NONE TONIGHT
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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.
