Good evening StockBandits!
The slow-motion breakout continued today with the major averages adding similar gains to what we saw on Monday. The buyers stayed in control throughout the session, although stocks never really took off and ran. Nonetheless, we’re once again sitting at new 52-week highs, and the uptrends remain intact.
Rather than sprinting higher after clearing resistance, this market continues to simply grind its way higher. Momentum isn’t really present, despite the fact that every dip continues to get bought. That’s keeping things a bit tricky at the moment, because often times within uptrends when we see technical hurdles get cleared it allows for quick bursts higher followed by rest and dips. This time however, the market is showing very low volatility, as the down days have largely been very shallow declines and the advances have been equally tame.
The one good thing about this type of movement is that it can persist for a while, as the lack of upside acceleration helps prevent overbought conditions. No telling whether or not this run will continue, but at the moment the bulls have more room to run if they want to produce it.
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, NWS, SGY, CTXS, SWK, CXO
Swing Trading Candidates:
SWK has been resting just beneath short-term resistance, and a breakout could put this one back on the move higher. I’ll be a buyer if the $73.85 level is cleared to the upside. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
CXO remains in an uptrend and has put in some healthy rest in recent days. I’m watching the trend line just overhead for a break at $97.50 to trigger a buy, as that could free up this stock to start another leg up. 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:
NWS, WDC, APC, NXPI, MCK, AET, DFS, VFC, MCP, REE, SHZ, JAZZ, LEN, TCK, ROC, SFY, MOS, GRT, BG, XEC, SOL, CELL, SGY, AA, TEX, IPI, STEC, SWK, HUN, BMC, CXO, WLL, NG, OAS, ERTS, FLIR
Bearish Watch:
JRCC, VMW, WHR, CTXS
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.
