Good evening StockBandits!
The bounce we saw on Monday and Tuesday carried over yet again into today’s trading. Early strength was built upon throughout the session, leaving the indexes at their best levels of the day by the closing bell.
Just as last week’s downside move appeared to be an overreaction, this bounce is shaping up in much the same manner. Prices have recovered a huge amount of what was given back last week, but volume is declining across the board. Toss into the mix the fact that broken support could easily serve as resistance going forward, and it leaves me extremely cautious here when considering the long side.
I don’t make market predictions because I believe our role as traders is to respond to whatever comes along (rather than initiate a position and then hope), so I’ll refrain from doing so here. I will say though that I have no interest in making buys at this juncture, if for no other reason than a pullback or some rest is becoming increasingly likely. At some point, traders who got caught in last week’s downdraft may wonder if this is a second chance to do a little selling, and that could easily put a speed bump in the path of this bounce.
So heading into Thursday, I see a handful of plays which interest me for day trades on the short side. If they trigger, I’ll take them. If not, I won’t be forcing anything. We should be able to get more aggressive with the swing trades again once we see even a brief rest, but so far we’ve seen nonstop downside followed by nonstop upside. ‘V’ reversals are nearly impossible to catch, so I’m being patient here until some better conditions arrive – and they will.
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: BP, DO, EL, RYL, OSG
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
NTRI, MGA, ADS, ZION, SFI
Bearish Watch:
MON, ROST, SQM, BP, DO, ATW, LLL, EL, UNT, RYL, OSG, RDC, ATLS, BHI, BAX
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.
