Good evening StockBandits!
The market attempted to stabilize today, but it sure wasn’t an impressive effort on the part of the bulls. New pullback lows were set in the S&P and DJIA, while the NAZ and RUT each respected and held above Wednesday’s lows. In the end, the indexes finished mixed and little-changed.
The one bright spot in today’s session was the fact that we did finish off the lows of the day, thanks to some afternoon buying in the final 2 hours of the day. It may be that this market had simply become short-term sold out and it was time for shorts to cover, but today’s reduced volume doesn’t imply the buyers were doing much – after all, they’ve been missing all week long.
As we head into tomorrow’s session, I’m averse to new swing trades. Most charts are simply in poor shape and need a little more time before the patterns are sufficient enough to warrant multi-day trades. For me, the smaller the pattern, the shorter the timeframe for that trade will be, and tonight the patterns which are setting up I just don’t trust for anything but day trades. Additionally, we could come in on Monday morning to a sizeable gap in either direction should we happen to see any significant events in the Middle East over the weekend. That makes holding over the weekend more of an earnings-announcement-like coin-toss, which I strictly avoid for the sake of risk management.
There are some setups I like for quick plays on Friday, but other than that I think it’s best to maintain a cash position and wait for more technical clues to emerge – and they will soon, one way or another.
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!
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Video Stocks Discussed: PXD, MERC, MTW, GMCR, FST
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
SRZ, MTW, NXPI, SD, YOKU, KLAC, XEC, KEG, PXD, SM, LDK, MERC, MAKO, DVN, DAN, BGCP, GMCR
Bearish Watch:
CIT, DLB, FST
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.
