Good evening StockBandits!
Each of the indexes reached new recovery highs today, with the DJIA and RUT both tagging 52-week highs while the NAZ and S&P 500 pushed past key short-term levels at 2802 and 1332, respectively. In the end, however, some late-day selling erased the day’s gains, leaving the market averages mixed and little-changed on the session.
It’s interesting that we’re still seeing plenty of hesitation on the part of buyers to really produce a ramp higher in this market when given the chance. We’ve seen selloffs get bought aggressively, but new highs aren’t leading to runaway breakout-types of moves. That indicates to me that the shorts are still the ones wielding the wallets on dips, as they’re eager to cover into weakness due to a lack of downside follow through for the past couple of years. The bulls, on the other hand, seem to be sitting tight for the most part, passively buying.
That’s not to say that this run lacks steam, because anytime we’re near 52-week highs, the market has ample strength. However, it does suggest that the best plays for multi-day moves will be buys on pullbacks. Other setups (ie: breakouts) can still be taken, but for the most part seem most productive for quick pops such as day trades.
It’s healthy to see the market putting in a little rest up here, and that’s really helping to build some bases on the charts of individual stocks. I’ll continue to list setups here as they come available for swing trades, but for Wednesday I’ll be keeping an abbreviated timeframe for new plays.
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: CXO, ADSK, UNP, KEG, FRO, HMY, APA, SLW, PDC, LNC
Swing Trading Candidates:
NONE TONIGHT
[table “19” 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.
