Good evening StockBandits!
Monday’s failure to move higher left the indexes looking vulnerable to a pullback, as multi-day win streaks came to a halt. Although the market finished only fractionally red, the bars on the daily charts implied that the bounce had stalled out and may soon give way to some profit-taking.
Today, that notion was confirmed with weakness right out of the gate. Early selling pressure showed cash getting raised across the board, but the pace of the decline slowed by the time the afternoon arrived. A minor bounce attempt lifted the market only slightly from its lows, suggesting that there may be more to come in terms of selling in the near term.
The 2-week bounce left many stocks hugging some rather steep rising trend lines, and many of those were broken today. These kinds of moves often tend to establish lower highs on the daily charts, so that’s what we’ll need to closely monitor in the days and weeks ahead. For now, the long side seems to have less appeal, so let’s see if that remains the case on Wednesday.
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: RAX, PKX, RL, SWM, LFT
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
RAX, WFMI, WLP, F, TCO
Bearish Watch:
TIF, PBR, CENX, PKX, FSYS, RL, UA, SNA, MDVN, BGC, WFR, SWM, SPR, AMAG, CAT, FLIR, LAMR, R, ATW, LFT
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.
