Good evening StockBandits!
The major averages staged a comeback today with a sharp bounce higher. Along the way, we saw the NAZ reclaim 3000, the S&P reclaimed 1370 (& 1388), and the DJIA closed back above 13055. Today’s action included a modest gap higher at the open, but the majority of the day’s gains occurred between the bells with a steady intraday uptrend. A minor pullback into the close erased a few points, but all in all it was a very strong day for the market.
Despite pushing back up above some important levels, today’s action felt squeezy. During corrections, rallies tend to be sharper, whereas during longer-lasting advances we tend to see smaller daily lifts (see Jan & Feb index charts for examples). Today’s volume was also light. I’m not declaring today’s lift to be untrustworthy, simply stating that the overall price action lately lacks commitment and therefore it could be we’re just seeing typical range-bound behavior.
My plan is to continue eyeing both sides of the market for plays, as my bullish and bearish watch lists are similar in size. There are stocks which are caught in more meaningful corrections, while others have simply pulled back within their respective uptrends. I believe both can offer near-term potential, so with the indexes lacking conviction I’m willing to trade both directions until we see a broader commitment directionally.
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: TRIP, AMZN, NEM, CP, SMG
Swing Trading Candidates:
NONE TONIGHT
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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.
