Good evening StockBandits!
The highs for the session were set in the opening minutes on Friday, but the indexes were still able to stand their ground. The day was characterized by light volume and a trading range, and in the end we saw the market finish right near Thursday’s closing levels. The NAZ and S&P 500 were down by less than 1 point each, while the DJIA added a modest 12. All in all, it was a day of rest, which this market badly needed after the big recent run.
Just as one day does not a trend make, nor does one day qualify as adequate rest after a 5-week rally. For the past 11 sessions, we’ve seen only 2 declines on the NAZ – both of which were by a fraction of a point. That’s about as close to a non-stop run as you will find, and it makes it extremely difficult to get on board here. The likelihood of profit-taking kicking in is rising by the day, but it hasn’t begun yet.
That means it’s equally tough to get short here as it is to get long after this run. It may persist, but it’s a high-risk spot for new buys, unless they’re only for quick flips. Ideal trades offer great reward with limited risk, but with the market so stretched to the upside, it’s difficult to imagine a lot of room beyond current levels for the rally to carry before a decent pullback or rest phase arrives. Either one would do this tape a world of good, but for now the wait continues.
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: PXP, SANM, WLL, LFT, CENX, GCI
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MED, WLL, F, DPZ, LFT, LCAPA, PXP, SANM, LEA, SOHU, CIT, FTI, BEXP, CYT, ALTR, VIT, TIVO, GMCR, RYL
Bearish Watch:
RAX, CENX, ANW, GVA, VMC, REGN, GCI
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.
