Good evening StockBandits!
An upbeat start this morning saw a brief attempt at a gap fill, but the buyers prevailed and the market held its ground in positive territory. From the morning lows, the market was able to trend quietly higher throughout the session, going out just a short distance from its highs by the closing bell.
Yesterday’s upside reversal therefore found follow through with today’s action, taking the indexes each closer to their respective descending trend lines. The one standout in that regard tonight is the DJIA, which cleared its descending trend line today. The trend lines aren’t the ultimate level to watch, however, but merely the next ones to approach. Beyond them still stand the prior bounce highs, which were formed on the rebound from the initial pullback from the February peaks.
The market is showing some momentum right now, despite the V-shaped recovery from the recent lows. Technical traders like myself see this as a high-risk area to be initiating new buys, but as of yet we’ve not seen the bounce run out of gas. My plan is to respect the price action and take a few short-term plays as they come along, particularly since there are several technical reasons to avoid initiating new buys for anything but quick flips.
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: TSO, EMN, URI, CVI
Swing Trading Candidates:
NONE TONIGHT
[table “11” 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.
