Good evening StockBandits!
Following Monday’s big lift in the indexes, today we saw them give up a few points each as they essentially put in a day of rest. This is healthy to see, as the market needed to catch its breath without surrendering its hard-won gains with yesterday’s short-term breakouts.
There’s no need to be concerned at this point, as the trends are still up and we are holding above last week’s (former) resistance levels which may now serve as support. Many individual stocks continue to need rest after their recent runs, so every day of lateral price action will benefit them.
I’m looking to stay selective heading into tomorrow’s session, and am eyeing setups on a couple of timeframes and in both directions for potential plays. I intend to continue favoring the long side for as long as the market is showing strength, but there will be opportunities for shorting in those names which are showing relative weakness even in the face of what has been a rising market.
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: FWLT, RIMM, CHMT, BTU, WLT, NIHD
Swing Trading Candidates:
NIHD looks to be on the road to recovery – at least for now – after undergoing a significant correction just a few weeks ago. I’m watching this little wedge for an upside resolution and looking to get long if the stock is able to push past $18.35. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
