Good evening StockBandits!
Tuesday’s weakness carried over into today’s action, with the NAZ staying red all day while the S&P 500 and DJIA were only able to go briefly positive. In the end, more declines were posted as traders again stayed away from the buy side following technical breakdowns from the recent trading ranges.
Although the market has broken down on a technical basis and appears to be in the early stages of a correction, in the very short term this is a difficult spot to be initiating new short sales. We’ve seen a solid 2-day decline which has damaged many individual charts, and it may very well be that some kind of relief bounce is in order soon. That isn’t at all to say that prices can’t continue lower first, but simply that I’d prefer to see some attempt at a bounce before looking to add short exposure. If this market is topping, it is likely to be a process with some failed bounce attempts along the way, so let’s see if the buyers attempt to step in soon.
For Thursday, I’m eyeing a few day trade candidates, but there really isn’t an abundance of good charts to choose from tonight. A little rest or even a minor bounce would greatly aid the construction of individual charts, allowing some short-term bases and patterns to further mature and bring along with them many more candidates for trades. At the moment, the short side appears to be higher risk after this selloff, so I’m going to instead focus on a few bullish setups for quick trades on Thursday.
I will be traveling tomorrow afternoon and most likely will not be able to put out a full newsletter on Thursday evening. If it turns out that I am able to, then I’ll be sure you are notified via Twitter and email. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday.
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 Thursday. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
CSTR, FCH, NFLX, IAG, MBI, GG, JDSU, SKF, VXX, FAZ, ISLN, PNK, CLP, ABX, DNDN
Bearish Watch:
PFCB, GMCR, MTG, CSIQ, HNT, CAM, BP, APC, RIG, CAKE, JPM, COG, DO
The Hit List post will follow shortly with my trade levels for the swing trades.
