Good evening StockBandits!
The indexes continued their bounce today from the lows set on Tuesday, albeit in a lackluster fashion. Not only did the net changes fail to impress, but we saw volume diminish across the board. Toss into the mix the fact that we still have plenty of overhead at levels above from recent weeks, and there are plenty of reasons not to trust this bounce.
Nothing is out of the question, of course, as this is the stock market and anything is possible at any time. However, gauging from the price action, the volume, and the overall conviction this market seems to have, there’s no evidence mounting as of yet to suggest we’re on the verge of gaining momentum in either direction. In other words, we could see this range-bound price action persist a bit longer.
Tomorrow is of course options expiration day, which is frequently influenced by the role of derivatives, and thus often difficult to read much into. Then next week is followed by a 3-day weekend and the Memorial Day holiday, which is often a signal that summer is beginning. So, with range-bound price action, options expiration, and then a major holiday all in a few days, it’s a good time to lower expectations in the coming days.
I do expect the summer to have plenty of activity and ongoing opportunities, so please don’t misinterpret what I’m saying. What I’m doing my best to clarify is that over the next few days, barring a big change in the price action, we may not see much momentum surfacing. If the market happens to surprise us and produce it, great. Otherwise, we’re preparing to be selective and patient until the next few days have passed.
Be sure to check out today’s post covering Setups Under $20, as I know quite a few enjoy the additional ideas.
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: NUAN, HOC, SOHU, GG, CAM
Swing Trading Candidates:
NONE TONIGHT
[table “48” not found /]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.
