Good evening StockBandits!
After becoming short-term oversold from the 3-day slide which began Friday morning, stocks bounced today. The gains weren’t overly impressive, but the market did a nice job of holding onto its gains throughout the session. That means we could see some follow through going forward, but there’s still plenty of congestion at higher levels which could serve as resistance.
While the bulls may be encouraged by today’s return to the trading range, they still have much to prove. Today’s advance came on lighter volume, which is to say there was narrower participation in the buying. We’re also still a considerable distance from the upper end of the range, so if the bulls intend to create new highs soon, they’ll need to bring their best.
The back-and-forth nature of the current environment reminds us that follow through is harder to come by in a trendless market. That also means greater selectivity is likely to be rewarded when it comes to multi-day plays. We’ve caught some nice day trades of late though, so there are still opportunities for those willing to adjust to current conditions. I do expect to see more swings coming available in the days ahead, but for now high levels of cash are warranted by this price action.
By the way, I posted a Trade Review of BIDU today over on the blog, and I know quite a few of you were involved in that trade. Go check it out for a recap, as well as some lessons to take away from it.
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: AZPN, KCI, WBC, CAM, NUVA
Swing Trading Candidates:
NUVA has pulled back for a little more than a week from its highs, but hasn’t given up a lot of ground relative to the recent advance. A push north of the trend line at $31.60 will trigger a buy for me as this one gets back on the move. Initially I’ll look for a test of the recent high, followed by a move into the unfilled gap from last fall. 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.
