Good evening StockBandits!
The major averages climbed carefully from a shaky start on Friday to settle into a trading range for the bulk of the session. In the final hour of the day, stocks caught a bid to take them to their best levels of the day, capping off yet another very interesting week of trading.
Reversals have quickly become the norm for this market, and last week was no exception. With the early portion of the week picking up where the previous one left off, we saw some heavy selling pressure on Monday. The indexes were able to find buyers in the support zone near the late-May lows on Tuesday, and from there turned higher with a big rally on Thursday and some late follow-through on Friday to go out at their highs of the week.
There’s plenty of day to day movement and overnight movement lately, but overall the market has settled into a wide and sloppy trading range in recent weeks. Traders on both sides of the tape seem equally distrustful of the moves, and rightfully so with all these reversals, which is also prompting rapid shifts of direction once momentum stalls out. The buyers are aware of just how difficult it’s been to see lasting upside, and the shorts are mindful of the steep spikes which tend to come within market corrections.
The week ahead should be interesting as well, so we need to bring our best. This isn’t a time for bold predictions or getting glued to an opinion, because in trading ranges, anything’s possible. In the bigger picture, the market remains in a correction phase, and no technical proof has yet emerged to dispute that. So, cash is nice to have on hand, as is a flexible opinion, because this market is likely to have a few more tricks up its sleeve before things really smooth out.
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: GOLD, UNG, MED, FCX, RL, FLS, MHK, HD, AZO, XEC, SM, HAIN, JLL, BIG
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
AKAM, NFLX, DECK, LVS, APKT, GOLD, RGLD, AZO, NTAP, DTV, ARBA, VMW, IT, XEC, GIL, UNG, PANL, AMR, LOOP, VRSN, SM, GSIC, HAIN
Bearish Watch:
BIIB, VMC, MED, JOE, HOG, FCX, RL, JLL, VNO, PCP, XHB, AXE, WHR, FLS, GXDX, BIG, MHK, FSLR, MDC, CAT, HD
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.
