Good evening StockBandits!
Bookend gains made the difference last week as the market started and finished strong, tagging new 52-week highs across the board. This of course keeps the uptrend intact, but perhaps more importantly, it puts a little bit of a cushion between current prices and the uptrend lines from the February low.
The same dynamic which has kept this market thriving in recent weeks still hasn’t changed, which is the fact that it’s gathering no traction on the downside. That means there’s a constant need for short-covering, as virtually any weakness is an opportunity to alleviate pain for those caught on the wrong side of this tape. The upside has been persistent, but no big impressive single-day moves have been seen. As a result, prices keep edging higher, keeping the bears on the run.
Before we kick off tonight’s video, I want to make one point with regard to the uptrend lines. They may get broken even if prices stagnate, but the break of those trend lines will only serve as an initial warning that the upside is losing steam. Many people are quick to declare an end of the trend approaching, but in reality, turning points for the indexes tend to be more of a process than an event. The buyers have a lot of confidence right now, and that’s not likely to change quickly if and when we do see a dip. Expect them to put up a fight, so respect the uptrend while it’s still here.
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: LEA, SANM, LLEN, BEE, BUCY, VMW, WMS, STT
Swing Trading Candidates:
VMW is nearing the upper end of its rectangle pattern, and may break out soon. I’ll be a buyer if this one can clear $55 and start a new leg higher within its uptrend.
WMS is threatening to clear key resistance here, and I’ll be a buyer at $45 if the breakout comes. There’s an unfilled gap which could easily get filled if this one can get on the move, and room beyond that level to run higher as well.
STT has been quietly working higher in recent months after a big correction, and now the stock is hitting upper resistance of an ascending triangle pattern. This one could easily accelerate higher if it can clear resistance at $47.50, so I’m looking to get long if and when that breakout takes place.
Bullish Watch:
COL, BA, LEA, PDCO, RDN, CREE, MSG, FO, LLEN, PCL, VMW, JOE, SKX, SWK, ULTA, UTSI, ALXN, WMS, SPW, BEE, HLX, BUCY, MPWR, SLXP, SMOD, FR, STT
Bearish Watch:
CAG, MON, SANM
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.
