Good evening StockBandits!
With the indexes having sold off to reach short-term support zones within the recent trading ranges last Friday, the early portion of this week was set to be a potentially important time. Further weakness could easily have brought about a breakdown from the trading range, as well as some accelerated selling pressure with sell stops resting beneath the range getting triggered. However, the alternate route was a bounce back up to into the range, which we saw today.
Merger news between airlines UAUA and CAL grabbed the headlines early, and as M&A tends to do, it gave traders some comfort. The initial strength was built upon as the day progressed, leaving the indexes with some breathing room between tonight’s closing prices and the lower boundaries of the trading ranges. That means tomorrow could quite easily be a day of rest and indecision, as we’ve seen most of the decisive moves within this range get followed with exactly that. Nonetheless, support was defended, and the ranges were able to persist for another day.
This market still has yet to break out, which is important to remember on a strong day like this. Follow through hasn’t been the strong suit of this market for the past 3 weeks, as both selloffs and rallies have merely led to short-term reversals. Such is the nature of these high channels with elevated indecision. My capital remains uncommitted for anything but the shortest of timeframes right now, until either some setups emerge which are too good to pass up, or until this range is left behind with a market move one way or the other. One or both of those conditions will change soon, so I’m looking forward to having more swing trades come available on the heels of some great trades during April. Until then, I’ll take what the market has to offer.
By the way, I’m doing some travel the next couple of days but will return to the video format a little later this week. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays on Tuesday. I will not be holding these overnight, and will wait for these levels to be cleared before entering trades.
Bullish Watch:
R, VMW, HOG, NFLX, SKS, FFIV, TPX, MGM, MBI, MF, LPX, TRN, MHR, JDSU, TOL, SPF, KBH, ISLN, KNL, GRT, CPHD, ADS, USG, LMT, ADSK, MMM, BC, PNK, GIL, MSPD, SCSS, HXL
Bearish Watch:
SOHU, AIG, F, AA, RTI, PBR, CENX, ADM, UIS, BG
There will be no Hit List tonight as we are 100% cash in terms of swing trades. Once we have open positions again on an overnight basis, Hit List posts will resume.
