Good evening StockBandits!
This morning, the futures were lower to set a negative tone in the early going, but then a half hour before the opening bell news broke of Standard & Poor’s cutting their rating on US debt from Stable to Negative. Although it still maintains its AAA rating, the news was enough to produce a pretty good downside flush. Stocks gapped significantly lower at the opening bell, and trended lower from there. Later in the morning, the market was able to stabilize and then grind its way partially back up in the afternoon.
Today’s selling took the indexes to a new pullback low, doing little to inspire confidence. However, the day was not without its positives. First, we did see an intraday recovery attempt, which showed that there was some buying taking place on the dip. Second, we held last week’s lows on the close. Finally, today’s move may have shaken out some bulls who may wish to re-enter upon further strength. That means this could still result in a higher low, but it’ll require further stabilization and eventually a turn back up to challenge the early-April highs.
Many stocks had been building bases and patterns which were fouled up by today’s bars. I have no problem eliminating those from my watch lists, but I was encouraged by the stocks which were able to hold their ground. There are still quite a few setups which could offer some potential in the days ahead, so we’ll just need to continue to work the charts in search of the best risk/reward profiles.
As a reminder, I’ll be doing a webinar on Tuesday night at 8pm ET, and I hope you can join us! Here’s the link where you’ll see details & be able to register for 30min of stock & pattern discussion, followed by 15min of Q&A. As a result, my Tuesday night Broadcast will be abbreviated.
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: SFLY, RAX, SOHU, MAKO, CTRP, UA, NTES, VMW, JDSU
Swing Trading Candidates:
NONE TONIGHT
[table “27” 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.
