Good evening StockBandits!
The indexes chalked up more new highs last week, and again it was similar price action to what we’ve seen for some time now. Recent short-term resistance was cleared, but not in runaway fashion. Instead, stocks staged another modest rally with multiple days of gains, none of which were of the impressive variety.
Neither the news flow nor the technicals suggest a downside turn at this point, although one could still arrive without warning. We’re not too extended in the short term, and there’s still a bit of room before the upside projections are reached (NAZ 2856, S&P 1370, RUT 846-856, and DJIA 12700-12800). So the coast is clear for more upside, but it’s still quite impressive how this rally has persisted. Every minor dip has been bought – either by bulls needing to chase performance, or by bears desperate to cover shorts on any pullback – and as a result, we’ve seen nearly a constant bid beneath stocks for many weeks now.
And despite the long-in-the-tooth nature of this rally right now, it’s still an uptrend and trends can persist many times for much longer than what may seem reasonable or possible. In other words, it’s a good time to remind ourselves not to fight the tape, because the bulls have momentum and it will run its course – with or without us. Fortunately, we’ve caught some nice trades on the long side lately. There may be many more to come, or we may at some point see reason to become more cautious – the key is to stay attentive and keep an open mind to any development which comes along.
Tonight I’m going with the written format as I’ve been traveling with my family this weekend, but will return to the usual video format on Tuesday. My notes and trade levels are provided on the charts below.
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: PNRA, UA, RL, JNPR, NCT, ROST, BCR, CROX, WWWW, TIF, BWA, BIG, DVN, ARBA, BG, XXIA, PLCM, PTEN, CHKP, CTXS, CLS, NWS, MXIM, RAX
Bearish Watch: FCX, TCK, JDSU, SLAB, TSRA, NAK
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.
