Good evening StockBandits!
Following a very eventful series of sessions last week and Friday’s upside reversal, today’s action was far less interesting. There was some back-and-forth action, but it was within the confines of a relatively narrow trading range compared to the recent volatility we’ve seen. In fact for the NAZ, it was the narrowest-range day for the past 2 weeks.
Perhaps the most notable move of the day came in the final 20 minutes, as the indexes tumbled quickly ahead of the closing bell, finishing right near their lows. That served to erase all the gains on the DJIA, and nearly all of Friday’s gains on the S&P 500 (it saved 2 points of it). The NAZ was able to slightly outperform, but it still wasn’t immune to the selling pressure.
The next few days are likely to be pivotal sessions for this market. With Friday’s bounce having failed, it will be particularly interesting to see if the selling pressure resumes again tomorrow. If it does not and prices are able to stabilize, then today’s action will be the hiccup and stocks can resume their relief bounce. At the moment, it’s still a very tough spot to be initiating new trades in either direction, as the sellers haven’t yet disappeared (tricky to get long), and yet so many stocks have broken down hard enough that many shorts feel like a chase.
This indecision in the market is keeping the charts quite sloppy, as tonight there are very few worth noting. That’s sometimes the case in the market, and the best way to handle it is to focus on the best setups and see what triggers. That’s my game plan heading into Tuesday anyway.
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: CSTR, TS, GS, V
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
CSTR, PHYS, UHS, VRX, GLD, GIL
Bearish Watch:
HAR, CF, MON, MEE, SPWRA, MOS, HXM, JEC, CAM, DO, GS, PVA, SNDA, IOC, V
There will be no Hit List post this evening as I am in cash on swing trades and only looking to day trade on Tuesday.
