Good evening StockBandits!
The indexes posted only minor gains today, but it was definitely a psychological win for the bulls. After a relatively flat open, the market sold off sharply into 10:15 ET. However, the buyers emerged once again, and the lows of the session were made. From there, the market grinded its way higher into the closing bell to finish in the green.
Over the past week, we’ve seen a pair of dips get bought. One of them was after a hard selloff from last Friday, leaving a nasty high-volume distribution day on the daily charts of the indexes. The other was today, just an intraday dip. In both cases though, we’ve seen the buyers step up to provide support. As a result, the market now looks poised for another push higher, potentially out of the 1-month trading range the NAZ has been bound by.
Tomorrow morning we have econ data which could drive the early action, so all eyes will be on how the open is treated. If we gap lower, the question will be if an attempt is made to fill the gap. If we gap higher, can we hold it and produce across-the-board highs in the indexes? It should be an interesting day to send traders into the weekend with some questions to ponder.
There are some setups I’m eyeing for trades tomorrow, and with the NAZ and RUT both still range-bound (for now), I’m going to maintain cash overnight and stick with day trades. Once some patterns emerge which offer good potential for multi-day moves in conjunction with a market that’s unrestricted, I’ll look to add more swings to my list, as I do prefer to operate on multiple trading timeframes. For now, I’m taking what the market is offering, which are short-term plays for cash flow.
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: AA, ARBA, HOG, MOLX, APA
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
LBTYA, ATPG, ADTN, ZAGG, PAY, UTX, CLR, RES, SODA, SGY, AA, PLCM, NWL, ARBA, SWKS, DVA, VSEA, SM, HOG, MOLX
Bearish Watch:
APA, SLAB, CELG, DRIV
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.
