Good evening StockBandits!
Today’s session saw narrow ranges and some back-and-forth action as the indexes failed to gather lasting momentum in either direction. Each finished with single-digit net changes, with the DJIA coming in a few points positive while the others finished slightly red.
All in all, it was a day of digestion. The market has made a nice recent move higher from the lows of last week, so to see the buyers take a bit of a break isn’t unhealthy. We’re still just a short distance from the highs and still above recently-cleared resistance zones, so today’s minor pullback isn’t anything for the bulls to be concerned about. We saw a bit of a lift into the closing bell, reminding us that the dip-buyers are still present (as if we’ve forgotten).
The tough thing about this market right now is that it’s not easy to be long or short in. We’ve crept higher for quite some time now, making it easy to worry about a pullback – and one of these days we’ll see one. At the same time, shorts haven’t really paid well, as every dip in this market has been bought and that makes it difficult to get downside traction – even in weak stocks. So it’s the kind of environment where we just have to continue to seek out the best setups and manage our risk accordingly while we wait for higher volatility to arrive.
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: KSU, KKR, MON, PAAS, CSX, SLAB
Swing Trading Candidates:
CSX is sitting in a high base within its uptrend, and could get back on the move any day. I’ll be a buyer if the upper trend line gets cleared at $71.25. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
SLAB rolled over decisively a few weeks ago and has since only managed a partial bounce on poor volume. This has created a rising wedge pattern, which is bearish, so I’m watching for a break of the lower trend line to trigger a short entry at $45.30. 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:
NXPI, RCII, GTI, KKR, KSU, LRCX, XXIA, JAZZ, ROC, IPXL, NANO, MON, SGY, TEX, SWK, CXO, OAS, BEXP, FLIR, NWS, EL, SOHU, SFD, PXP, CSX
Bearish Watch:
ANR, APA, SLAB, TRGL, PAAS, F, QLIK, WHR, CTXS, BYI, WLT, PCAR, SSRI, AG
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.
