Good evening StockBandits!
The indexes posted inside days today as stocks rested on light volume. An opening gap to the downside saw a gradual but partial recovery by day’s end with the dip-buyers still present but in no hurry to push past last week’s highs. No selling was seen, however, allowing the market to correct slightly in time (via lateral movement) rather than price.
Today’s inaction was healthy to see, despite the fact that no intraday fireworks were seen. Uptrends can persist when strength is followed by either some profit-taking or rest, so this is exactly the kind of day the bulls would prefer to see at this point. The current advance remains long in the tooth, but as of yet there are no signs of letup and that means the long side is still the side to trade on – so long as caution is exercised.
In sifting through the charts tonight, there were quite a few bullish patterns out there, but many need some work via tightening consolidations or simply some additional rest to help trend lines extend and become more valid. There are a few names which look poised for moves Tuesday, although I’ll be keeping my timeframe for them as day trades rather than adding overnight exposure. My current swing trades are trying to work, which is encouraging, but I’m going to stay selective in adding more names with so many stocks still looking short-term extended.
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: CLR, SYNA, CCJ, FCX, MCP
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.
