Good evening StockBandits!
Inside bars told the story today for the NAZ and S&P 500 as they respected Wednesday’s trading ranges and never gathered momentum in either direction. The lack of volume was noticeable as well, which contributed to the lack of follow through we saw. In the end, the indexes finished little-changed, putting in a much-needed day of rest after the recent run. Even the SPY put a formal end to its 14-session win streak, giving up a mere 6 cents.
It remains a very difficult environment for trading aggressively, as the stretched nature of the averages makes for tough spots to buy. At the same time, the lack of downside we’ve seen leaves fewer charts with a bearish appearance, reminding us that the short side is also one to be careful with. This will change at some point, I want to remind you, but until it does some added patience is necessary. We must wait for better conditions before becoming more aggressive, but we won’t have to wait forever. A little added volatility will go a long way, it just isn’t here yet.
Tomorrow we have options expiration Friday, which is typically a bit of an unusual day due to the impact of derivatives on the trading action. Motivations can differ on those days, as the buying and selling is often accompanied by hedges, so it’s always worth approaching such sessions with some added caution. That’s my game plan, so I’ll be focused on some day trade candidates tomorrow rather than looking to build any new positions.
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: CREE, HOLX, MBI, AMSC, HK, REGN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
SFSF, CAKE, WLP, CREE, DTG, SANM, LEA, HOLX, VAR, AMLN, MBI
Bearish Watch:
AMSC, HXM, PXP, HK, CDE, REGN, ADM
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.
