Good evening StockBandits!
Today we saw the indexes stabilize further after Monday morning’s selling, adding to the possibility that a higher low may be in the works. We saw attempts made to fill the Monday morning gaps, although as of yet they’ve not completely been filled (NAZ 2764, S&P 1319, RUT 834, DJIA 12341).
Some are concerned that the nature of this bounce isn’t intense enough, and therefore it could fizzle out quickly. I can’t argue with that, although I’m also not interested in shorting into it at this point. For the time being, a higher low is still possible, so it may simply be that this rally is initially slow to gather some steam. That still leaves room for upside acceleration if it gets embraced in the coming days, so it’s important not to count out the bulls just because they’ve been idle for a few weeks.
I’m still working the charts continually to keep track of bases and patterns which are building and maturing. The shake-up from Monday eliminated some of them, but there are still quite a few intact which could develop into solid trades if they begin to gain traction. The thick of earnings season is approaching quickly on the horizon, so I’m keeping a close eye on those events as well in order to avoid any surprises. Lately I’ve taken very few swing trades, but as patterns mature and confirm I’ll look to add more overnight exposure.
Tonight I’m doing a webinar in conjunction with Worden, 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.
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: MFN, HANS, CPO, CREE, TER, RAX, FLIR
Swing Trading Candidates:
RAX has spent the past couple of weeks building a symmetrical triangle as it digests the prior advance. This one looks about ready to resolve the triangle, so I’m watching for a continuation move to begin if the upper trend line gets broken. I’ll be a buyer if this one clears $43 on its way back up. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
FLIR has pulled back to test prior resistance, which now is serving as support. I’m watching the descending trend line just overhead for a push back up through it, as that would free up this stock to rebound from this support zone. I’ll be a buyer if the $33.30 level is cleared. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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.
