Good evening StockBandits!
The indexes each finished in the red today but overall nothing of great significance took place. The lack of intraday momentum left the charts with narrow-range bars. All in all, this market is still range-bound since the recent pullback from highs.
From the bulls’ standpoint, this is encouraging since we’ve yet to see any follow through to the initial pullback which began on April 3rd. Support is currently being found, and although we’ve yet to rally back up, at least we aren’t selling off.
From the bears’ perspective, this is encouraging due to the fact that we’ve yet to keep rallying. This is taking on the appearance of a correction followed by a trading range, which often spells continuation. A resumption of weakness could spark heavier selling on the next round.
Both sides have a fair argument, but rather than join one of them I’ll continue to defer to the charts. In the short term we’ve seen some weakness and a lack of aggressive dip-buying, but in the intermediate term the trend is still up and it’s difficult to argue with that. My take here is to trade both sides as quality setups come along and otherwise exercise some caution with regard to getting highly exposed to either direction – at least until the market picks a direction with greater conviction.
I posted Episode 3 of When The Bell Rings today. It’s 4:07 long and offers some important reminders for you as a trader when it comes to staying focused, so be sure to check it out (scroll down below).
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: SWHC, LGF, AGCO, GG, DE
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.
