Good evening StockBandits!
Perhaps determined to prove that yesterday’s rebound was no fluke following Friday’s weakness, today the buyers pushed each of the major indexes higher. All of them stayed beneath last week’s highs, although not by much, making another breakout a distinct possibility going forward.
On a week during which big-name earnings are the primary focus, traders were a bit less active today, but apparently unafraid to proceed without waiting for all the news to arrive before putting more cash to work. The S&P 500 reclaimed its (formerly) broken trend line, leaving it just a few points from last week’s highs.
Clearly, the uptrends are still very much intact, and that’s worth noting. A hiccup like we saw on Friday so late in a trend like this tends to get many contrarians talking about that being the end. As I’ve noted here, a true change of trend isn’t likely to happen in a day – it’s far more likely to be a process. Lower highs and lower lows will need to emerge, and as of yet, we simply don’t see that in the technicals.
Although I do see a lot of stocks working on new bases over the past few days, very few of them appear ready to go, and that leaves me with a pretty thin trading list heading into Tuesday. With an upside gap looking likely here in the after hours, exercise some caution early in the session tomorrow and pay close attention to how the gap gets treated.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: FO, SUSQ, AMAT, FFIV, FAST, APOL, CBI
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
PDCO, COL, CREE, FO, JOE, AIG, F, SANM, WMS, NFLX, BZH, SUSQ, FFIV, APOL, LPX, CBI, VRGY, FAST, AMAT
Bearish Watch:
JCP, MON
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
