Good evening StockBandits!
An ugly open this morning left stocks well underwater to start the day, reversing higher from a triple-digit decline. Concerns in overseas markets, mixed responses to earnings since yesterday afternoon, and the presence of Obama in NY speaking out against Wall Street in hopes of reform left the tone rather negative. But once again, the buyers emerged to not only offer support, but turn the tables with positive closes by the end of the session. The NAZ made a new 52-week high, while the S&P 500 and DJIA each stopped just shy of their recent highs.
‘Amazing’ is probably the best word for the current action, as it seems this market cannot or will not stay negative for more than a few hours. Shorts are getting their heads handed to them and are forced to cover on a regular basis, keeping a bid beneath the market. Those with cash on hand have growing confidence with the higher prices we continue to see, and that’s also playing a role in the persistent strength we’ve seen.
At some point we will see conditions change, and a dip will not get bought. However, it’s not up to us to try to anticipate when that will be. Our job as traders is to stick to what the charts are telling us, which for now is that the uptrends are still intact. The higher we go, the more caution is warranted, but we can continue to trade in the direction of the trend until technical proof emerges that suggests otherwise.
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: HLX, THC, JOE, FAST, RINO
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
HLX, JOE, PDCO, WMS, NTRI, LPX, MTW, FAST, HXM, FISV, ATPG, RGLD, DAN, THC
Bearish Watch:
MON, SOHU, RTI, MASI, RINO
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.
