Good evening StockBandits!
The market spent today’s session range-bound, unable to recapture the momentum of Tuesday’s session. Both the high and the low of the day were set in the first hour of trading, with neither level being violated for the remainder of the day. That made for a very uneventful day, although it was a healthy way to digest the gains of the previous two sessions.
At this point, we’re still range-bound for the NAZ and RUT, two indexes which are key for higher prices if this market is going to run again. The S&P 500 held 1300 again today, which is positive, but wider participation is needed if we are to see upside continuation.
While we wait for more unified price action, my plan is to continue sticking with shortened timeframes. Plays from last night which produced excellent moves through their respective triggers included DIS, RDC, and BWA (not to mention MCP moved $4 higher after gapping 3c through the trigger). That’s offering plenty of movement without the overnight headline/gap risk, which this market is clearly sensitive to at the moment. Aside from earnings headlines and geopolitical events (ie: Egypt), we have important econ data these next two sessions in the pre-market which the market is likely to respond to, for better or for worse.
January was a solid month here for the swing trades, and February is just now getting underway. I’m in no hurry to rush trades simply to be “in something,” as that is a way to frustration and confusion. When the right setups come along with good potential and well-defined risk, I’ll certainly take positions in them. For Thursday, as noted, there are some setups which look good for quick moves, so that’s where I’ll focus my attention.
Tonight I’m going with the written format rather than the usual video, as I’m still battling a cold right now and coughing too much and my throat is too sore to speak. Therefore, my notes will be on the charts themselves tonight. Hopefully in a day or two I can return to the show-and-tell video format. Go get ’em Thursday!
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
DIS, ATPG, MCP, REE, ROK, BRKR, BRKS, TXN, SOLR, AA, PLCM, RDC, RKT, IPI, STEC, ARBA, SWKS, JDSU, DVA
Bearish Watch:
ANR, ORLY, SLAB, INFY, BWA, DRIV
The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.
