Good evening StockBandits!
A minor gap up this morning kicked off the week on a positive note, and the buyers continued to emerge for a while to take the indexes right to key resistance zones highlighted here last night. Those levels proved to be formidable resistance once again, and stocks backed away for the remainder of the day. By the close, stocks were at their worst levels of the day after having given up their gains.
The current environment remains one in which upside follow through is very difficult to find. We’ve seen quite a bit of back-and-forth price action, and the frequent reversals are playing a key role in the lack of trust among traders when rallies begin to stall out. When so many are eager to sell at the first sign of weakness, it makes it tough to expect much else. Those who are long have felt enough pain that they’re quick to raise cash when in doubt, and of course the bears are anxious to remount shorts into rallies, combining for plenty of selling pressure.
So, the trading ranges are intact for another day, and that’s the most important thing to take from today’s action. Key levels were validated again today, so we’ll continue to focus on them heading into tomorrow’s session.
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: NBR, ADSK, SDS, QID, FAZ, NSC, RIG, DLB
Swing Trading Candidates:
WHR has bounced in recent days, but along the way the finishes have been weak and the volume hasn’t been impressive. This stock is already in a downtrend, and appears to be stalling out here after this bounce. I’m eyeing the lower rising trend line at $97.70 for a break to signal a short sale.
MAN is starting to stall out after a bounce from the recent lows, and could easily turn down again. A break of the rising trend line at $43.50 will be my signal to short this one.
Bullish Watch:
GOLD, VMW, IT, GIL, UNG, SDS, QID, HSY, NTRI, CAL, RBCN, VRX, FAZ, GLD
Bearish Watch:
VMC, BIIB, DO, JOE, RL, WHR, FSLR, MDC, HD, CSTR, NBL, NUE, GNK, TEX, DISCA, NSC, DLB, NBR, AMG, LAMR, FTI, MAN, ROK, QCOM, VFC, MMM, CSCO, ADSK, RIG, ESI, ATI, CLF
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.
