Good evening StockBandits!
Friday’s quiet breakout produced a little follow through today as the indexes worked their way higher throughout the morning. The highs of the day were set before lunch, however, and from there the market gave back a little ground from its best levels into the afternoon.
So, new highs were made again today across the board, including the RUT, which is encouraging since small-caps have lagged of late. However, volume failed to pick up with today’s market strength, which is the second straight session for stocks to climb on lower participation. That’s not typically encouraging from a technical standpoint, and toss into the mix the fact that today we saw a little afternoon weakness. That combination might lead to some profit-taking, so despite the strength here it’s still a good spot to exercise some caution.
Tonight I’m seeing a handful of setups which look good for short-term moves, but I’m still unwilling to get too exposed in either direction. The market is drifting higher here, but sending some mixed signals with the weak volume, so I’ll continue to stay selective until more consistency is seen in the technicals.
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: MOS, SODA, DOV, WFR, SNDK, PAAS
Swing Trading Candidates:
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 $33.95 level. Earnings are due out on 2/15, so I’ll be out of this trade ahead of that announcement. 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, MCP, LNG, IVN, SFY, MOS, GRT, AFL, SODA, SOL, GSM, SGY, AA, DV, STEC, AVL, SWK, HOG, MOLX, HUN, WTI, DOV, JEC, WFR, HES
Bearish Watch:
MCD, MSB, PAAS, SNDK, QLIK, VMW
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.
