Good evening StockBandits!
This morning, stocks began the new week with lots of indecision as the indexes stayed range-bound for the first couple of hours. Once the morning highs were cleared, we saw the market catch a bid which held for the remainder of the day. The rally wasn’t impressive, as we did stay within Friday’s trading range (inside day), but it provided a modest lift on the day, leaving the indexes in the green by the closing bell.
A higher-low scenario is certainly possible here, with last week’s low having potential to hold. At this point, it seems that notion isn’t being widely embraced, particularly if today’s inside bars and lighter volume are considered. However, the bulls have a good technical shot here at building on the stabilization of the recent pullback, so we have to keep an open mind.
For the time being, the indexes are short-term range-bound, and with volume trailing off here I’m still reluctant to embrace trades for timeframes beyond a few hours. Within trading ranges, as you know, the price action is indecisive, and reversals are much more prevalent. Add to that the fact that there are primarily what I would call mediocre setups out there tonight, and there’s little reason for committing capital here. That’s subject to changing by the day, but looking slightly to the left on the charts we see May becoming range-bound, and until that changes it means swing trades won’t get much sympathy direction from the overall market.
By the way, be sure to scroll down beneath tonight’s Broadcast to check out my mid-day Chart Review post for Stocks Under $20.
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: ARW, FFIV, SINA, NTES, OSK
Swing Trading Candidates:
NONE TONIGHT
[table “40” 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.
