Good evening StockBandits!
The bears who have been waiting for this market to roll back over are still waiting tonight, as last week we saw another impressive run on the upside. The February lows continue to get farther away, while the January highs have come right back into view. On Friday, the NAZ made a new 52-week high, while the S&P 500 posted its 6th consecutive gain to finish just 12 points from its January high. It has been virtually nonstop green for the past few weeks, which means emotions are running high for both the bulls and the bears.
The biggest thing I’ll be watching in the days and weeks ahead is whether the S&P 500 and DJIA can confirm the highs which the NAZ just made. If not, the NAZ may be subject to a bull trap whereby new highs invite more buyers, only to see the NAZ turn lower to move more in sync with the senior indexes. Right now, the NAZ is leading the way, and we don’t have anything but some light volume to point to in terms of technical flaws. Since the January highs were established, we’ve seen a huge V-shaped move take place, but it may not be done yet.
Heading into a brand new week of trading, it’s important that we prepare for anything, because nothing is out of the question in terms of what might happen next. It’s wise to approach the long side with added caution after such a significant run, but that doesn’t mean we can aggressively short stocks either. The short-term trend is up, and that deserves our respect.
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: VRX, LIZ, ATLS, IOC, RIMM, MED, LEA, FCN, TS, FSLR
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
VLTR, VRX, MED, WLP, IT, SMCI, UAUA, MTG, SANM, PL, ACXM, LEA, LIZ, NKE, SQNM, ATLS, HOLX
Bearish Watch:
IOC, BGC, AMAG, CFI, FSLR, RIMM, UNT, HXM, FCN, ANW, CSKI, TS
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.
