Good evening StockBandits!
The major averages finished last week without making any real big strides in either direction with the NAZ heading lower (largely in sympathy with AAPL) while the others posted gains. The day to day action was quite choppy, however, with momentum difficult to find.
The first real week of earnings season got underway, and that may have played a role as traders fixated on individual stocks while the indexes continued to base. We also had options expiration, which lately has seemed to have a bit of a limiting effect on stocks.
So far, Q2 isn’t off to nearly the bang as last quarter with the NAZ currently off by 3%. Although that’s sure not much of a correction, what we’ve primarily seen is indecision. Of late, it’s also become a bit more common to see bounces get sold. That’s different from Q1 when every minor dip was so aggressively bought. Whether this is foreshadowing of a deeper correction to come or simply a rest phase isn’t clear yet. What I do know is that in the short term the bulls seem to be content and therefore are not working as hard to allocate capital as they were even a few weeks ago.
We’ll see how things play out in the days and weeks ahead, but one thing is for sure: this is a great spot to be patient while we await further technical clues. We’ve got a few trading ranges to keep an eye on across multiple timeframes, so until we see prices move outside those boundaries things are likely to remain messy and indecisive.
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: TK, WFM, DNKN, OC, FSLR, NFLX, FDX, AFFY, MRO, FOSL, BHI
Swing Trading Candidates:
NONE TONIGHT
[table “265” 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.
