Good evening StockBandits!
More new 52-week highs were made last week as the major averages tacked on early gains and held onto them as the week progressed. A minor dip from the highs was seen in the latter portion of the week, but it was mostly a brief rest for this market which continues to push higher without any meaningful pullbacks. That dynamic is frustrating both bulls and bears alike, as the buyers would like to get in on the rally and the short sellers can’t get any lasting downside to set in at all.
At some point, that will change, and it’s important for us to recognize that. One of the toughest things about being a trader is walking the line carefully between trading what we see and looking slightly ahead to plan for what may soon arrive. I’m not claiming that a bear market is right around the corner, but eventually we are going to see a pretty good pullback, so it’s imperative that we continue to monitor the price action and the character of the moves in the days and weeks ahead. Once some elements begin to shift, it’ll be a good signal to take a more defensive posture, but right now it’s tough to get even a brief rest in stocks to create some new patterns. Patience is important in a tape like this, so we can’t be in too big of a hurry to either deploy capital or call a top.
As we head into a 4-day trading week (with the market being closed on Friday for the Good Friday holiday), the bulls maintain an edge in both the technical and psychological realms. We have some key levels to keep an eye on, but otherwise the uptrend channels are still very much intact and deserve our respect. While we wait for better conditions to surface for putting more capital to work on a multi-day timeframe, day trades look best so I’ll be taking a quick-hit approach for Monday.
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: LPNT, HMA, MLHR, EFX, JCP, HAR, BA, SYNA
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
COL, BA, EFX, LEA, GD, DLTR, TRW, CISG, JCP, LPNT, ODP, HMA, HAR
Bearish Watch:
ANW, UTHR, SYNA, MLHR, SQM, MED
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.
