Good evening StockBandits!
After reaching important areas of resistance with yesterday’s rally and early strength today, stocks put in some rest this afternoon. The indexes finished mixed and little-changed on the session, which seems to be about the only thing they do when they aren’t rallying!
It’s been quite a one-way street for this market the past 7 weeks, and while we are indeed stretched, the uptrends are still intact. Extended market conditions can remain so for longer than seems logical sometimes, and this is one such occasion. At some point we’ll see some more aggressive profit-taking kick in, but as of now we’ve yet to see the change of character needed to really generate any meaningful selling.
I remain cautiously bullish, as that’s where the setups are for now. However, I’m taking primarily a shortened timeframe with new trades while eyeing some swing candidates which are by no means stretched. It could be that even with an overall market pause or pullback, these could benefit from some rotation. If not, I’m content with the level of risk they entail. At any rate, there are a few setups I’m interested in for Friday.
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: CP, ANR, IOC, FDX, UPL, PXP, SLB
Swing Trading Candidates:
PXP has consolidated here in a very tight triangle pattern within an overall uptrend, and the stock looks poised for a push higher if a breakout can occur. I’ll be a buyer if this one clears $38.50 to start a new leg up. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
SLB has channeled for a few months and now has a shot at an upside exit to continue higher. I’m watching the $78 level for a trigger to buy. This channel is about $11 wide, so my second target will be slightly more conservative than that. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
