Good evening StockBandits!
Stocks gapped higher this morning on the heels of encouraging earnings reports last night, as well as strength in overseas markets. The morning gap was held and built upon due to the lack of profit-taking. The news of downgraded US debt which struck fear in the hearts of market participants on Monday morning was mirrored today with enthusiasm, serving as a reminder of just how short-sighted the market tends to be. That’s exactly why I’m a trader and not a long-term prognosticator.
Today’s strength took us right back to key levels in the big 3, as the NAZ again tagged 2802, the S&P 500 tagged 1332, and the DJIA finished just above the recent highs at 12450. That makes the next few sessions potentially pivotal, as the bulls have another big opportunity here to press their edge.
Needless to say, Monday’s losses have now been fully erased, and it sure didn’t take long. This market has had plenty of opportunity to sell off deeper in recent weeks after the pace of the rally from late-March and early-April slowed, and yet it has held up quite well. It appears as though we’ve just established, at least for the time being, a higher low on the daily charts. Stocks are climbing the proverbial wall of worry here, so let’s keep an open mind here as this unfolds.
Tonight in the after-hours session, the futures are pointing higher once again after encouraging earnings reports, which could produce another upside gap tomorrow morning. With Thursday being the last trading session of the week (since the markets are closed in observance of Good Friday here in the U.S.), and with a quick rebound from Monday’s lows, we could see the early strength used for some profit-taking. It’s still a trader’s market until we see all the indexes reach new 52-week highs, so keep that in mind as we head into tomorrow.
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: ICE, PAY, CNX, GPOR
Swing Trading Candidates:
NONE TONIGHT
[table “29” 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.
