Good evening StockBandits!
Today provided yet another example of how dips are getting bought with greater aggression than new highs as a gap lower saw only minimal additional selling before a sharp turn back up to take the market positive. The NAZ, DJIA and S&P 500 all tagged new 52-week highs at that point, only to cool down and enter a choppy range for the remainder of the day.
The bulls have had an excellent run, no question about it, but the bears seem to be playing a continued role in this market’s recent behavior. The bears have no confidence at this point, and therefore are prone to covering shorts into virtually any weakness over the past few weeks. Momentum players aren’t getting involved once key overhead levels are cleared, which makes this very much still a dip-buyer’s market for now.
My watchlists remain heavily bullish with only a handful of bearish setups currently in the charts. The key is to stay selective after a 10-week run, knowing it may continue but that at some point some profit-taking will eventually kick in. I’m looking to keep trading the long side with some caution, and I’m staying patient with adding new swings since it’s strangely not the kind of market uptrend which is steadily lifting all stocks. Keeping an open mind is of great importance here, so don’t let this market lull you to sleep!
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: MMM, SLG, GS, C, BIDU
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.
