Good evening StockBandits!
The market attempted to rebound today with a strong start and an upside gap. Earnings from JPM provided the early optimism, along with the multi-day pullback from the highs of last week, but the catalysts faded and so did the morning strength. Before long, the NAZ had filled its gap and the bulls seemed to be nowhere in sight. After a test of negative territory, some buying eventually emerged to push the indexes back into the green by the end of the day, but it was far from an impressive rally.
At this point, the market looks to be attempting to stabilize, but the buyers still seem to lack conviction. That may change in the next few days and perhaps we’ll see a better bounce, but for the moment there’s still plenty of indecision, and that deserves our respect.
I’ve said it already this week but I cannot stress enough the importance of not overtrading while the market is range-bound. This is a daytrading environment, as there’s limited follow through and reversals are frequent (just see today’s intraday charts as Exhibit A). Once we see a cleaner overall pattern emerge, we can then expect better momentum to arrive, which should mean a far better swing trading environment. Until then, patience is imperative along with preserving capital – it’s just too easy to get chopped up in these trading ranges.
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: CAT, FOSL, VRUS, WTW, AEM
Swing Trading Candidates:
NONE TONIGHT
[table “24” not found /]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.
