Good evening StockBandits!
The market was heading north this morning before news hit of another big earthquake in Japan (7.1), renewing radiation concerns which just recently subsided. That sparked a wave of selling, but also resulted in the low of the day. The first bounce led to a higher intraday low, and from there the market was able to stabilize and recover from its worst levels. In the end, the indexes shed just a few points, continuing to cling near key levels.
We’ve seen this market essentially spend the week on hold, unable to gather any momentum to add to the recent rebound. Given the size of the rally from last month’s lows, a pullback wouldn’t come as a big surprise to anyone. However, what I find most interesting about today’s events is that the market had the perfect excuse to pull back and didn’t. Instead, it simply marked time for another day, adding to the small base it’s been building this week.
Going forward, it wouldn’t take much to get each of the indexes back to 52-week highs. The DJIA and RUT have already reached them, the S&P 500 is less than 1% away, and the NAZ is less than 2% from its highs. If the most bullish thing the market can do is go up, then it’s done the 2nd-most bullish thing this week by quietly digesting the recent run without moving lower.
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: COV, CSX, ADI, CHK, GDP, FFIV, MGA, LEA, AKAM
Swing Trading Candidates:
AKAM looks to have stabilized since its correction with the establishment of a higher low in the near term. I’m watching the descending trend line for a break just overhead with a push through $37.70 to indicate this one is continuing its recovery. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.
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.
AKAM = CUP and HANDLE, Im going BIG if it clears $37.70.
Hey Peter, I definitely think it could see some acceleration higher as the idea of a higher low becomes embraced. We’ll know soon enough!