Bandit Broadcast for 6-1-2010

Good evening StockBandits!

The holiday-shortened week began on a poor note this morning, but the buyers stepped in to offer some initial support. That lifted the indexes well into positive territory, but only temporarily. The market then drifted back around the flat line for much of the session, before weakening in the final hour to make the ultimate difference. In the end, the indexes each shed more than 1% by the closing bell as stocks limped across the finish line.

Today’s poor performance leaves the indexes perilously close to recent support zones. Although those zones have been penetrated on an intraday basis, the indexes have been able to consistently close above the early-May lows. Another session like today and those levels would be in jeopardy, which in turn could leave this market headed once again for lower levels in search of some lasting support.

I continue to view the long side here with skepticism, primarily for the fact that this market has struggled so bad to bounce for more than a day at a time. Whenever bounces are still getting sold consistently, it’s typically a signal that the long side should be played with extreme caution. Tonight I’m carrying 3 overnight positions…2 on the short side, and 1 long which has had its stop tightened. I’m eyeing shorts for tomorrow as day trades, and will remain cautious with new buys until this market is able to prove itself more capable of holding onto gains. Right now, it’s still a pretty slippery slope.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday. Thank you for your patience with this evening’s late report as I’ve been tending to some other matters.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.