Good evening StockBandits!
The indexes edged higher in the early going last week, only to point to some exhaustion setting on on Wednesday with a hard downside reversal. However, the dip was again aggressively bought with widespread strength on Thursday which took the major averages to new recovery highs on a closing basis. Friday’s action was choppy and mixed, although both the S&P 500 and DJIA achieved their best levels of the current advance.
This market continues to keep the bears frustrated, as every bit of weakness has proven to be simply another buying opportunity. Dips have been bought with more aggression than breakouts, however, which suggests that at this point in the rally it’s those who have been underperforming who are doing the heavy lifting. That can obviously continue for quite some time, so perhaps an acceleration move higher will ultimately mark a short-term turning point if it arrives.
Uptrends and downtrends both can persist for much longer than sometimes seems logical, and at this point we’ve rallied to the tune of 9 weeks since mid-December without a meaningful pullback. The lack of profit-taking has generally translated into steady, nonstop uptrends which aren’t easy to chase. However, it’s a change of character we’ll need to see in order to shift the tide, and as of yet we haven’t seen one. That means the long side remains the side to trade on, with elevated caution of course.
One other note…. I will be speaking at the NYC Trader’s Expo this Tuesday morning at 8am ET. Those of you in the NYC area, I’d love to see you at the event and hope you can make it. I know some of you are planning to be there. Here’s a registration link if you’d like to attend. Those of you who are unable to make it to NYC, my session will be webcast in case you wish to attend virtually (details on the Traders Expo site).
**I will have only an abbreviated Bandit Broadcast on Tuesday night due to several appointments while in NYC, and again Wednesday due to travel. Things will return to normal again Thursday evening, and I just wanted to let you know ahead of time.
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: FOSL, SFLY, ROK, YOKU, ROC, TZOO
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.
