Good evening StockBandits!
Monday’s weak finish paved the way for another hefty gap to the downside this morning, as the indexes all opened roughly 2% lower. The NAZ gapped 50 points, the DJIA gapped about 200 points, and the S&P 500 gapped some 20 points on the open, taking each them to new correction lows as they began the day.
However, the worst levels of the day were seen in the opening few minutes of the session, and from there stocks staged a gradual recovery which intensified in the final 2 hours. By the end of the day, the indexes had erased their losses to finish essentially flat on the day.
Today’s closing levels helped to establish the presence of support, particularly on a closing basis in the major averages, so it will be interesting to see if that leads to a sustained bounce in the days ahead. Friday’s reversal off the lows held some promise for an oversold shake-out, and while the first try didn’t stick, we sure can’t yet count out this occasion.
The market has come down considerably over the past 2 weeks, and at some point a bounce is going to arrive. And while I don’t have a crystal ball, I do know that right now I don’t want to be short given the stretched nature of the proverbial rubber band. There are several longs I’m considering for plays tomorrow, and other than the names highlighted in tonight’s video, I’ll be focused on market-tracking ETF’s.
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: VCI, SHLD, AMSC, HOT, UHS
Swing Trading Candidates:
UHS pulled back gradually the past few sessions after a nice breakout, and this sets up a well-defined bull pennant pattern. I’ve been watching this pattern develop for the past week or so, and it now appears finally ready to make a move. I’ll be a buyer if this one can clear the upper trend line at the $42.35 level.
Bullish Watch:
NTRI, DCTH, VCI, SFI, SHLD, PHYS, ORLY, LCC, UHS, HOT, AZO, SNDK, SPRD, AMSC
Bearish Watch:
V, ATHN
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
