Good evening StockBandits!
Last week started out with some upside as Monday and Tuesday each saw the market post 1% gains. However, the volume associated with the rebound and the lack of a greater surge higher left many bulls scratching their heads wondering “is this it?” Wednesday brought indecision, which was soon followed by heavy distribution on Thursday which undercut the prior pullback lows from late January.
Friday’s action wasn’t much better – for a while anyway – as the indexes reached new depths on the pullback with the buyers again notably absent. With just a couple hours left in the session though, the bears began to cover shorts and we saw a rapid ascent off the session lows, bringing the indexes back into positive territory by the closing bell.
Although the net changes were far from impressive, the fact that the indexes were each able to finish green does point to some short-term downside fatigue. That in turn opens up the possibility for a relief bounce of some sort, which many stocks could benefit from. The harsh selling off Wednesday’s highs left things in a rather oversold condition, so perhaps that’s in the process of getting relieved. Follow through will be needed this week for a relief rally to stick for more than a day or two, so let’s see what happens. I am sure not eager to short anything after Friday’s upside reversal though, at least until some better basing action occurs.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: GNW, CAGC, LYV, TLB, SHLD
Swing Trading Candidates:
SHLD has been grinding lower for a few weeks off its January high, and has now successfully filled the gap from early this year. The stock set a new pullback low on Friday and then finished nicely positive, taking it back up to challenge the descending trend line. A break above the trend line will trigger a buy for me at $92.50 as this one turns higher and gets clear of the declining resistance which has restricted the stock’s movement.
Bullish Watch:
GNW, CAGC, SHLD, LYV, GRA, TLB, DV, TWC, LNCR, LXK
Bearish Watch:
PVH
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
