Good evening StockBandits!
The market gapped higher this morning following a pair of big declines and a quiet news front, inviting buyers off the sidelines ahead of the opening bell in hopes of participating in an oversold bounce. The early strength proved to be the extent of the upside for most of the indexes, as the early strength failed to find any meaningful follow through.
Today’s inside bars on the daily charts offer little to be excited about tonight. Volume waned compared to the levels seen in the prior two days, suggesting this was more of a dead-cat bounce and knee-jerk relief rally than a positive change of character. On top of that, intraday we actually saw some selling take place in the NAZ and RUT between the opening and closing bells, reminding us that in the midst of a market correction, bounces get sold.
It’s still a news-driven market right now, and the frequent large overnight gaps we’re getting leave me content to stay on the sidelines in terms of ending each day in cash. At some point the dust will settle and we’ll likely have our hands full with great technical setups, but right now I’m only willing to trust stocks for a few hours at most, which makes me a day trader heading into Friday. The sidelines have prevented pain in recent weeks while others suffer from sudden losses, and that’s a huge advantage we have as short-term traders.
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: MDR, MTZ, CAT, WHR, DECK
Swing Trading Candidates:
NONE TONIGHT
[table “6” not found /]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.
