Good evening StockBandits!
The NAZ and S&P 500 are the two most important indexes in my opinion, and today we saw both of them reach new 52-week highs. The only trouble is that they only did so incrementally, which is to say that the strength was once again yawned at by traders.
An early-afternoon dip was kept relatively shallow as buyers stepped in aggressively on that short spurt of weakness, but it was far from an impressive day. This market remains quite buoyant, and over the past 10+ weeks we’ve of course seen momentum from the standpoint of nonstop strength. What’s so unusual is that the day-to-day momentum is essentially non-existent and all we’ve been doing is creeping slowly higher.
This is the kind of market which can become dangerous in the sense that it just lulls traders to sleep. I touched on this last night, but effectively what we have is a market full of complacency at this point. That introduces the potential for surprise at any moment, and given the recent daily ranges being quite narrow, a shake-up could certainly produce a sizeable move in either direction.
We’re well overdue for a pullback, but that alone is not enough to produce one. Rather than predict what, if, or when we’ll see the character of this gradual uptrend change, it’s more important to simply stay on our toes and be ready for whatever comes along. That’s always our job as traders, and right now is no different.
I’m sticking with existing swing trades and my new plays for tomorrow are each day trade candidates. I don’t mind adding exposure for multi-day moves when the right setups come along, but tonight there simply aren’t any I’m unable to live without.
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: SFLY, ICE, NAV, PCAR, CLF, SIMO
Swing Trading Candidates:
NONE TONIGHT
[table “229” not found /]
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.
