Good evening StockBandits!
A gap down on the heels of overseas weakness offered another dip to be bought this morning, and that gap was actually filled. However, once the indexes had recovered, they weren’t able to hold their ground for long. Heavy selling kicked in, taking them decisively lower, and this time the dip-buyers failed to appear. After a modest bounce, new lows were made on the session to mark the 2nd day of distribution on the charts in just the past 8 sessions.
Today’s downside brought about the 3rd attempt at a break of the rising trend line for the NAZ, and this time it stuck on a closing basis. The S&P 500 and DJIA each also gave up considerable ground, chalking up the biggest percentage decline we’ve seen since February 4th. The growing volatility of late, along with key technical breaches of uptrend lines, is offering plenty of reason for caution at this point.
I’m in cash, and with this recent rally having gotten somewhat long in the tooth, I’m willing to wait to see if this dip gets bought. At some point a correction is going to set in, and although we just saw new 52-week highs made yesterday, buying stocks right here seems to hold more potential pain than potential in the short term.
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: AEM, X, MEE, RINO, MTG
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
STRI, AEM, GG, SA, FFIV, SUSQ, WAL, POZN
Bearish Watch:
GMCR, CAGC, UTHR, AMLN, MON, MEE, CEPH, BUCY, STT, MOS, X, ADM, GDP, MASI, RINO, MCO, TX, MTG, AGU, POT, IPI, BIIB, BG
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.
