Good evening StockBandits!
Tuesday’s bounce on weak volume added to the recovery off the February lows, but it also added reason for skepticism. Not only were key levels of overhead coming into view, but the limited participation in the upside offered plenty of reason for caution as the odds of a short-term pullback increased. Today, we saw more strength in the market, albeit of the muted variety, as each of the indexes posted modest gains on continued weak volume.
Needless to say, this market is giving plenty of reasons to stay sidelined, as this type of rally typically isn’t to be trusted for very long. Nonetheless, the buyers are still building on the relief bounce, and tomorrow could prove to be somewhat pivotal as key resistance levels are now within spitting distance. With some key earnings reports this evening and some economic news scheduled for tomorrow morning, it will no doubt be interesting to see what’s used for fuel on Thursday.
There are certainly a limited number of tradable patterns in the charts tonight, which is again keeping my timeframe abbreviated heading into tomorrow. Many stocks have made large V-shaped recoveries over the past couple of weeks, which leaves few candidates on both the long and the short sides. More setups will emerge in the days ahead, so it’s our job to take what’s available each day and utilize it as best we can while waiting for more opportunities to get aggressive. Right now, patience is a must.
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: PKX, MDVN, SWM, PHM, HOLX, IOC, AMSC, BGC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
ACXM, TWC, AFFX, PHM, HOLX
Bearish Watch:
IOC, PKX, AMSC, MDVN, AMAG, FDX, FSYS, MA, PBR, R, MSTR, SWM, CP, RAI, BGC, GPN, FE
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.
