Good evening StockBandits!
The rebound from the lows of last Tuesday came under some pressure Friday, but today they officially failed. New pullback lows from the May peaks were made in today’s session, highlighted by an opening gap to the downside which never saw a serious attempt at a fill. Instead, the indexes lingered deep in the red all day, never getting far from where they began the session.
Of course, today’s declines and subsequent new pullback lows confirms more lower highs, giving us now a pair of lower highs and a pair of lower lows. Whether the pressure stays on remains to be seen, but one thing’s clear right now: this market is still correcting.
I care not if this market turns a meaningful corner (in either direction), or if it becomes range-bound for a period of time. What I do care about is the quality of the trading opportunities at any given moment. Tonight, the only setups I like are those which can only be trusted for brief moves, so I’ll be a day trader on Tuesday. When it comes to high-quality patterns available for multi-day plays, they’re just not there tonight. That could all change in a day or two, and certainly may, but I don’t ever force trades in an attempt to get some overnight exposure.
Given the lack of setups tonight, as well as the fact this market has made a decent downside move over the past couple of sessions, it’s a very tough spot to do much. Instead, my aim is on capital preservation while this (thus far) minor correction continues to play out. That will leave me best-positioned to take advantage of the next opportunities which come along by having cash on hand, as well as preserve my objectivity by not chasing short sales here or by attempting to catch knives and go long in hopes of a quick bounce.
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: TUP, BVN, FTO, PANL, CAM, BGC
Swing Trading Candidates:
NONE TONIGHT
[table “50” 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.
