Good evening StockBandits!
A positive start this morning found follow through today as the buyers continued to put cash to work after last week’s test of some key levels. Mid-day, we saw stocks stabilize and enter into a trendless range, yet they held their ground in positive territory. As the day progressed, some afternoon buying took the market to its highs of the session, taking us back to within a stone’s throw from the highest closes from early this month. Volume returned as well, which helps add technical validity to today’s strength.
At this point, we’re still range-bound, but the notion of a higher low on the daily charts of the indexes looks like a much easier idea to embrace. We’ll of course need to see new highs made in order to fully confirm those higher lows, but for now they’re holding and the buying pressure is returning.
I’ve been sticking with day trades of late due to the market indecision, waiting for either better momentum to arrive or better setups. Tonight I’m seeing some good setups, so I’m adding them to the trading list for potential swing trades. If they all trigger, I’ll still be hedged with both long and short-sided exposure, and will look to commit more fully to a direction if the market is able to again make new highs.
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: GPOR, IPI, NOV, SOHU, RSH, CTRP, AGU, SINA, NTES, SNDK, MOS, BIDU
Swing Trading Candidates:
SNDK is trying to break a descending trend line here which would help to further establish a higher low from last week. I’m looking to get long if this one can take out today’s high at $48.10. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
MOS broke major support last week and has attempted to reclaim it without success. This one looks ready for another leg down, but needs to undercut short-term rising support to get moving again. I’ll go short if this one breaks $70.85. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
BIDU made new highs a few weeks ago but has seen a substantial change of character since then with some heavy distribution and only a partial rebound. This relative weakness to the NASDAQ is in keeping with many other Chinese internet stocks. I’ll be going short if this stock undercuts the trend line at $139.50. As with all swing trades, my stop and target levels for this stock are 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.
