Good evening StockBandits!
A gap down this morning saw only limited follow through, as some minor selling after the open ultimately marked the lows of the session. From there, stocks turned higher with a steady uptrend setting in for the remainder of the day, carrying each of the major averages into positive territory by day’s end.
Once again, the upside wasn’t nearly as impressive as the fact that the buyers stepped in once again on minor weakness – just as they have for quite some time now. This continues to point to short-covering since the market isn’t running higher by large amounts, and is instead simply unable to stay negative for more than a few hours.
The uptrend channels we’re in are still bullish – after all, it’s still an uptrend. But it’s interesting to note that the action is still being driven by those on the wrong side of the tape. I have to wonder if we’ll see some kind of upside capitulation before it’s all said and done.
Heading into Friday, I’m looking to primarily day trade some of the setups which look poised for quick moves. The indexes still aren’t far from their uptrend lines, so some profit-taking could still emerge from here. If we rally, I’m in some swing trades which should benefit, so I’ll be limiting additional exposure on Friday to intraday plays.
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: LEA, VMW, SWK, PCX, JOE, DAL, WMS, NTRI, DWA
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
BA, LEA, CISG, CREE, PCX, FO, PCL, VMW, JOE, DAL, CEDC, UNP, SKX, DPZ, SWK, SFLY, LZ, UTSI, HOG, WMS, ESRX, IVN, SPW, BEE, NTRI
Bearish Watch:
CAG, ENDP, DWA
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.
