Good evening StockBandits!
A minor gap to the upside was greeted with selling this morning as the pullback continued. Once the indexes filled the gap, the morning highs were never again approached, and in the end, the market gave up a bit more ground.
We are still dealing with some key levels here, namely NAZ 2744 (tagged on the number today) and 1312 on the S&P 500, which could serve as meaningful pivots going forward. We’ve pulled back for three days into those levels, and they may produce a bounce. However, if we do see them get broken, particularly on a closing basis, it will be our signal that stocks are headed for lower levels in search of buyers.
The prevailing mood seems to have dampened over the past few weeks. We’ve seen this market go from dips getting bought, to an environment where bounces are getting sold. That’s a subtle change of character, which requires that we stay attentive at this point and await further technical clues. I’m doing my best to keep an open mind here, because for the time being it’s still pretty much a range-bound market (with prices at the lower end right here).
Quite a few more charts emerged tonight with quality setups, including a pair of swing candidates I’ll cover in the video. What you will notice, though, is that I’m eyeing plays in both directions, as this market environment necessitates it right now. The good news is that it means there’s potential opportunity on both sides of this market, and that means profits can be had even with an overall hedged stance.
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: BHI, NOC, FMC, DKS, JOYG, ARBA, XEC
Swing Trading Candidates:
ARBA has pulled back from its high two weeks ago, but has done so in a quiet manner and is currently holding support. This stock overall looks range-bound, but if it can cross the descending trend line to the top side with a push past $32, it has room to move back toward the upper end of the range. I’ll be using that level as a trigger for a buy. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
XEC remains caught in a downtrend after failing at resistance in early April. Since then, the stock has seen multiple waves of selling, and currently rests just above a key level. A break through support at $89.00 could easily spark another wave of selling, so I’ll be going short if this stock undercuts that level. 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.
