Good evening StockBandits!
A gap up this morning was quickly sold, as the indexes surrendered their early gains to go red. The selling intensified throughout the morning, with no buyers in sight. The indexes undercut their intraday lows numerous times, stabilizing only briefly before doing it again. By early afternoon, the market had moved back down toward last week’s lows, and the pace of the slide slowed considerably. After some stabilization, an afternoon bounce lifted stocks from their lows, but only partially.
I’ve mentioned in the past few videos how when we’re caught in a trading range like this, anything is possible and frequent changes of direction are likely. We saw that take place on Friday with a hard selloff and a late-day spike back up, and today’s downside reversal was simply another example of this market respecting the boundaries of this range. So tonight, we’ve moved down toward the lower end of the range, but as of yet we’re still waiting for an exit from this area of indecision.
I’m looking to keep new trades short-term heading into tomorrow’s session, at least until we see a push outside the trading range. There are some nice day trading opportunities with this recent volatility, but they are ideal for those who have some experience managing trades intraday. If that’s not your style, then the sidelines remain a good place until we see this market make up its mind. With the growing emotion we’re seeing, I suspect once we leave this trading range it could lead to a meaningful move.
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: TTWO, CRZO, IDCC, IVN, POT, PLCM, JNPR, MGA, CSC, CAB
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MCO, JAZZ, SD, FDO, CLR, PXD, SLB, SGY, PLCM, AVL, JNPR, ALXN, ICE, MAKO, HS, BIIB, SGI, NDAQ, KV-A, EXR, TMX, RPRX, GLBL, PDS, EGY
Bearish Watch:
NTAP, APA, MGA, MGM, TCK, MOS, CMI, BWA, ARW, DLB, AIG, FCX, RYN, SOHU, CSC, GM, DE, LVS, COF, CAB, CF, MOO, COST, MAR, STT, HTZ
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.
