Good evening StockBandits!
The holiday weekend apparently left many market participants gathered at cookouts and discussing the markets, as today we saw overseas strength invite additional buying pressure to kick off this shortened week. An upside gap was initially greeted with a little profit-taking, however, erasing some of the morning enthusiasm. The gap was only partially filled though, and we saw another spurt of buying this afternoon take the market out at its highs of the day.
Today’s strength not only put more distance between current prices and the support zones we bounced from last week, but it also served to clear some descending trend lines which had emerged from the recent highs. That’s a positive technical event, even if additional levels of overhead still exist.
In looking through many charts this evening, I’m seeing quite a few stocks which now need to put in some rest. That may or may not take place immediately, but if this rally is going to stick, it needs to happen sooner than later. By the same token, it leaves me reluctant to put cash to work tomorrow as it feels like a bit of a chase at this point. A little rest or even some mild profit-taking would be a very healthy thing for this market. Once we see that occur, I would expect to see quite a few more swing setups emerging.
By the way, be sure to check out today’s position trade idea posted earlier in case you missed it.
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: NOC, APKT, LNG, RIMM
Swing Trading Candidates:
NONE TONIGHT
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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.
