Good evening StockBandits!
Today we saw SPY make its 13th consecutive gain (wow!) while the major indexes each reached for higher ground once again. The NAZ pushed to yet another new 52-week high, the S&P 500 easily pushed past the 1150 level which has held it hostage in recent days, and the DJIA edged closer to its January highs.
The main event of the day was the FOMC news, but it wasn’t really responded to like a major event. There was an initial pop, which was subsequently given back in short order, before a late-day bounce took the indexes to their best levels of the day. Momentum was absent yet again, but stocks were able to put together another advance.
The feeling of this tape is that the shorts are on the run – and have been. The inability of this market to pull back shows that there are buyers (shorts in need of covering) on every minor dip. However, strength isn’t inviting a lot of momentum, most likely because the bears are selling into new highs to get repositioned in case the next dip turns into something meaningful. So far it hasn’t.
Bull-driven markets tend to still have spurts of profit-taking, but we’re not seeing that. And until the bears receive all the pain they can handle, the slow drift higher doesn’t have to immediately end – despite the fact that even some minor downside is very much overdue at this point.
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: CNW, SANM, QCOM, CTSH, BC, ACOR, FOSL, PAY
Swing Trading Candidates:
FOSL has pulled back in a shallow fashion over the past week with light volume, preserving the uptrend. A move up through the trend line should put this stock back on the move, so I’ll be a buyer if this one can clear $39.05.
PAY is resting here on quiet volume compared to the recent heavy activity it has seen, but price is giving up no ground. This implies another run may be coming, so I’m watching for a trend line break at $23.05 to signal a buy.
Bullish Watch:
FOSL, MED, WLL, PAY, DPZ, CNW, SANM, CTSH, BC, GMCR, BIG, JNPR, BCSI, ACOR, PVTB, INCY
Bearish Watch:
RAX, HXM, GRMN, QCOM
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.
