Good evening StockBandits!
Friday’s weak finish carried over into today as a flat open gave way to more selling. New pullback lows were reached into the early afternoon before another bounce attempt kicked in, erasing the day’s losses and offering hope to suffering bulls. However, the strength didn’t stick and the market finished flat on the day.
While today’s rebound essentially stopped the bleeding for the bulls, it’s not yet enough of a technical signal to get bullish for anything but a possible relief bounce. We’re still seeing weak finishes almost daily, reminding us of the aversion to the long side and a lack of conviction on the part of the buyers. This market has been behaving quite poorly of late, and it has undercut a number of levels on the way down during this correction. It’s likely that will not easily be undone, as the issues this market faces are both technical and psychological. The mood has shifted decisively from a buy-all-dips mentality to a sell-all-bounces reality. That will take some time to heal, so our expectations for lasting upside should be set accordingly.
There are a few setups worth eyeing tonight for tomorrow’s session, so I’m hoping to see some activity one way or the other.
** On another note, this week I’ll be at the Trader’s Expo in Dallas. If you’ll be there, let me know! Also, there will be no Thursday evening Broadcast this week.
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: SQNS, DLTR, QIHU, IDCC, AMG, GGC
Swing Trading Candidates:
GGC has sold off significantly from its spring high, and currently sits near the apex of a falling wedge pattern. These patterns are often resolved to the upside, and with an oversold market and this stock sitting near a prior key level, I’m watching it for a potential reversal. I’ll be going long if this one clears the upper wedge trend line at $26.30. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
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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.
