Good evening StockBandits!
A modest pullback this morning set the stage for some additional profit-taking to kick in after the huge recent run up, but instead we saw the minor weakness invite more buying. The lack of upside follow through for the remainder of the session implies this was more the work of shorts in need of covering, rather than real accumulation, and that’s in keeping with the action we’ve seen lately.
Every little dip has been bought, and we’ve seen a distinct lack of downside since the February lows. Although the indexes weren’t able to make any meaningful upside headway today (NAZ was actually down a few points), the bulls were able to maintain the recent strength and avoid letting stocks slip for yet one more day.
Tomorrow we have an FOMC meeting which could spur some afternoon movement when the announcement is made at 2:15pm ET, and as usual, it will be the accompanying statement which the market will care the most about. The Fed is notoriously vague in the wording they choose to go in the policy statement, so it often invites some initial confusion once the news is out. Keep that in mind tomorrow if you’re trading intraday, as there are likely to be some head fakes in the aftermath of the main event of the day.
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: SANM, CIT, BIG, CTSH, VAR, HRS, QCOM
Swing Trading Candidates:
QCOM bounced off its recent low but has shown relative weakness for nearly 2 weeks now, moving dead sideways while the NAZ has run sharply higher. Clear support is being found here, and if it gets broken, I’ll be looking for a retracement move back down. A break of the $38.45 level will trigger a short sale for me, but only if that level gets broken.
Bullish Watch:
SY, H, DBRN, SANM, LEA, VOLC, CIT, CTSH, CYT, ANF, GMCR, CSCO, BIG, VAR
Bearish Watch:
RAX, CENX, RL, HXM, BYI, ANW, GVA, QCOM, IGT, HRS, GRMN
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.
