Good evening StockBandits!
A gap down this morning was met with some modest buying, but it wasn’t enough to erase the opening losses as the market posted minor declines today. In last night’s video, I mentioned we were short-term stretched and due for some profit-taking and/or rest sooner than later, and today we got it.
Even for a down day, today’s price action was constructive. The dip was worse intraday than where we ended up, as again the buyers stepped in to provide support and make their presence known. Throughout this run, we’ve seen dips get bought with great aggression – much more than new highs – and today’s session fit that mold.
Overall, today proved to be a day of well-deserved rest for the market, which is a nice way to digest some of the recent run. After a sizeable move over the past 2 weeks, every day of lateral price action is helpful for building new bases and patterns. We have the early ingredients for many bull flags and pennants to form over the coming days, particularly if we get some additional rest. For now, the bulls remain in charge, as we’ve yet to see a change of character in this market.
Heading into tomorrow’s session, I’ll be focused on some intraday plays. With the overall market attempting to rest here and with few setups which look suitable for multi-day (swing) exposure, the single-day plays could offer the best potential. Last night’s AMZN trade was a great example of that as it ran more than $7 from the buy point I listed here. Trades like that can make the week, even on a quiet session like we saw today.
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!
Video Stocks Discussed: BIDU, PAY, LNKD, MSCI, CROX, KORS, HUN, OPEN, GPOR
Swing Trading Candidates:
NONE TONIGHT
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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.
