Good evening StockBandits!
A poor finish yesterday pointed to possible downside follow through today as the indexes struggled to hold support zones, and particularly given all the big moves (mostly to the downside) we’ve seen in recent weeks on Thursday. However, today we saw a big opening gap to the upside, which was built upon as the day progressed, leaving the indexes with 2-3% gains by the end of the session.
If this market is anything right now, it’s fickle! Reversals have been the norm, both on an intraday basis, and on an overnight basis. That’s keeping traders of all styles and timeframes very much on our toes, as literally anything is possible right now.
Lately I’ve mentioned a number of times that this market could rip either way on any given day, due to the persistent weakness we’ve seen (promoting additional downside), and due to the sidelined bulls and shorts needing to cover (promoting upside spikes like we saw today). That’s still the case, although today’s bounce leaves something to be desired for the bulls.
The lack of strong volume accompanying today’s bounce makes it somewhat suspect, so for the moment all we know is that a bounce is taking place from support within a short-term (but very wide) trading range. Needless to say, it’s a time where the sidelines aren’t a bad place to be, and quick flips are about the only kinds of trades to be making until some clearer signals occur such as some lasting strength or another breakdown.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: XEC, PANL, HAIN, VMW, APOL
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
TIE, CRM, SM, GSIC, QCOR, VMW, XEC, AGP, PANL, LOOP, VRSN, HAIN
Bearish Watch:
VMC, AXE, MSFT, SHLD, LPS, BIG, ESI, APOL, CREE, URS
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
