Good evening StockBandits!
Another day of rest on the surface today for the indexes looked like a snoozefest, but underneath was more constructive price action for the bulls. Dip-buyers again made their presence felt this morning as some early weakness was viewed as an opportunity to scoop up shares, producing another intraday lift into positive territory.
In the end, it wasn’t much of an advance, but it was another psychological win for the bulls as they worked on the 8th week of the current rally. This move has left a ton of stocks in uptrends, of which many still look bullish, although tonight very few have well-defined short-term pivots for new entries. As the indexes rest, it should go a long way toward helping to build some bases, but we’ve only seen two days of lateral movement and therefore in many cases more of a pause is needed at this point.
There are a few bearish charts out there, but they are few and far between. I’ve listed a handful of short candidates here of late, some of which worked out well, but overall the side of the market to continue trading on is the long side until further notice. It’s tough to buy after a move of this magnitude, and I’m staying selective with new entries. At some point, we’ll see some profit-taking kick in and some reasons for greater caution and some shorting opportunities, but like it or not right now the bulls remain in charge and that deserves our respect. I’m watching for indications of a character change, but we’ve seen nothing as of yet which fits that description. The trend is your friend…
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: DVN, NIHD, MNST, CLR
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.
