Good evening StockBandits!
A gap up this morning saw some initial follow through as the NAZ led the way higher by partially filling the gap from last Thursday. That only lasted about an hour before some modest profit-taking pulled the indexes from their highs. As the day progressed, and particularly in the afternoon, the downside continued, taking each of the indexes into negative territory. By the closing bell, more losses were posted as the market finished only slightly above its worst levels of the session.
These intraday reversals have become quite common of late, and there remains a very high level of indecision in this market. Today’s turnaround in the NAZ was roughly 3% from the high to the low, which is enough to prompt motion sickness even in a rather volatile environment like this. Those kinds of moves are making it very tough to stick with positions for timeframes longer than a few hours, as all conditions are subject to change abruptly right now.
Lately we’ve seen prices repeatedly test support zones, breaking them a couple of times only to recover, and hint that some support is being found in this area. However, the weak finishes we continue to see are eroding what little confidence the buyers seem to have left. Today’s closing levels were the lowest prices we’ve seen the indexes finish at since this correction began, so although the intraday lows are still beneath us, this is still very much a time and place for elevated caution – at least until this market can start to finish better and suggest there’s some accumulation taking place.
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: FDX, RHI, SOHU, MON, MCO, EL, ACL, SHLD
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
UHS, SPRD
Bearish Watch:
CF, MON, MCO, MFE, DO, CECO, CRS, EGO, X, EL, ACL, SHLD, V, GLD, QCOM
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.
