Good evening StockBandits!
A bounce kicked in today to break the 5-session losing streak which had plagued the DJIA, SP500, and RUT. The rebound was far from impressive, however, as we actually closed slightly lower than where we opened on the NAZ. Meanwhile, the S&P 500 tested the 1370 level but was unable to reclaim it, instead finishing just shy of the mark.
We also saw volume decline vs. yesterday’s heavy distribution, which leaves today’s action looking more like a dead-cat bounce than the start of something which could last. The jury’s still out, but it appears that even on an advancing day there was a reluctance to put cash to work.
One thing I’ve been harping on of late is the idea that both sides deserve respect here. If the market is topping, it’s likely to be a process and that could involve some decent bounces as bulls seek to defend the gains they’ve produced in recent months. On the other side of the coin is the possibility that this pullback simply results in another higher low for the NAZ and S&P, so it’s premature to embrace the bearish argument until the technicals suggest otherwise.
In the short term, we’re still seeing some signs of weakness here and that demands selectivity. I’m sticking with abbreviated timeframes for new trades, electing to remain in cash for the moment until better setups emerge which warrant the multi-day commitment of capital for swing trades.
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: LGF, YNDX, GG, NEM
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
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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.
