Good evening StockBandits!
The major averages posted solid gains last week, setting a positive tone as February got underway. As is so often the case, the first day of the month offered ample strength, which the remainder of the week built upon. Two Fridays ago, the market had rolled over hard with no relent, and it appeared that a deeper pullback may finally be getting underway. But alas, the dip buyers prevailed once again, and now we have the 3 major indexes sitting at new 52-week highs (the RUT has yet to join them).
To see breakouts taking place is nothing new, as we’ve seen a number of them just in the past couple of months. What will be interesting to see is whether this one can gather more strength than previous new highs which were followed by quiet digestion. Regardless, it’s yet another reminder that the trends remain up and the bulls are still running things.
Friday’s breakout still has some proving to do, however. Although price is most important and new highs are being made, the way in which it occurred left something to be desired. The major averages only made new incremental highs, which is to say the market didn’t quite blast through short-term resistance zones. We also saw volume fail to confirm the new highs, as it remained below-average in each case. That’s something to keep an eye on in the days ahead, so perhaps the bulls will show a bit more resolve this time around.
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: BG, LULU, WTI, QLIK, LBTYA, PAAS
Swing Trading Candidates:
LBTYA is in an uptrend here and has just put in some rest following the most recent advance. A push higher through the trend line at $41.40 could put this one back on the move, so I’ll be going long if and when that occurs. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
PAAS recently failed after making new highs and has since changed directions to enter a new downtrend. Currently the stock is bouncing on poor upside volume, and a break of the rising trend line of support would pave the way for another leg lower to begin. I’ll be going short upon a breach of the $33.65 level. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
Bullish Watch:
LBTYA, LEAP, DIS, FTK, MCK, ATPG, RCII, IDCC, ATW, IVN, MOS, BG, IPXL, PXD, SLB, AA, ATI, IPI, NWL, LULU, ARBA, VSEA, SM, HOG, MOLX, WTI, DOV, DNR
Bearish Watch:
APA, ANR, PAAS, MHP, QLIK
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.
