Good evening StockBandits!
The short-term pullback continued today as the indexes sold off into mid-day. Key areas were tested, at which point buyers emerged to provide a lift from the lows of the day into the closing bell. The rebound wasn’t significant, but it was enough to remind us that the overall trends are still up.
To see a multi-day pullback like this rattles some market participants, but as traders we know it’s just part of the ebb and flow. We discussed last week how the indexes had become short-term extended, so to see some profit-taking kick in is actually a healthy thing. So long as this dip doesn’t evolve into an all-out reversal (and undercut prior lows), it has a shot at creating another higher low. Along the way, more bases will be built and leadership stocks may rotate, so it’s important right now to keep a close eye on the charts and watch for developing patterns.
I’m still only considering day trades for tomorrow’s session, as there simply aren’t well-defined, mature patterns available at the moment which I trust for multi-day moves (swing trades). The overall market trend is still up, but we’re in a pullback at the moment, which also keeps things a bit tricky. Stated otherwise, I don’t want to be shorting here, but it may also be a bit premature to aggressively buy. As such, I’ll stick with day trades in the short term until some higher-quality patterns set up for swing plays. My watch lists have been pared back considerably over the past few days, which also means fewer stocks are really in play here.
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: SLV, AAPL, FFIV, WSM, DTG, JNPR, AN, ZMH, X
Swing Trading Candidates:
NONE TONIGHT
[table “37” not found /]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.
