Good evening StockBandits!
Following a pretty nice lift from the lows of last Thursday, another positive start this morning offered a tempting opportunity for some quick profit-taking. The NAZ had run nearly 100 points from the lows just 3 sessions ago, and the list of buyable stocks had become greatly reduced. As a result, we saw an afternoon rollover today right after new highs were reached for the session, setting off a steady downtrend for the final 2 hours of the day. In the end, the indexes finished well off their highs of the day, but little-changed on a net basis.
This kind of action does point to some short-term fatigue, and that’s not surprising to see. The biggest question though is whether this area on the daily charts will lead to a lower high (as compared to the January peak), or simply another spot to pause before another climb.
The rebound from the February low has been a persistent one, with very little give-and-take along the way. It’s been characterized by rallies and consolidation, but no pullbacks yet. I suspect once we do get a pullback, it’s going to lead to quite a battle as the bears reassert themselves while the bulls do their best to defend their recent progress.
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: MTG, AMED, HXM, AMT, APOL
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MTG, CSIQ, AIV, ODSY, FOSL, CAKE, NIHD, PSUN, LLL, AMED
Bearish Watch:
HXM, PKX, FSYS, RL, CAT, AMT, FSLR, APOL, NBL
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.
Jeff, I know its not related to today’s trade list, but I wanted to give a huge THANK YOU related to your relentless stressing of placing stops. I can’t tell you how much grief it avoids on trades that go the wrong way.
Hey Josh,
It’s just something that’s been at the core of my own trading. There will be losing trades – they are unavoidable – so the key is to limit the damage caused by them. For me, having a stop in place allows me to go on about my business and seek out other trades. Plus, it prevents me from having to pull the trigger on a stock that’s not acting well, and that’s sometimes hard to do when it’s not automatically done for us (via a stop). Thanks for your note, I sure appreciate it!