Good evening StockBandits!
After a rip-roaring day on Tuesday, traders decided to lay low today. Stocks took a much-deserved rest, finishing not far from yesterday’s closing levels in a narrow-range, light-volume session. Key levels are still close by, which means this market still isn’t out of the woods yet, but the market did a good job of holding onto yesterday’s gains.
The issue right now is that this bounce has occurred in a straight-up fashion, making it very difficult to consider new trades here on the long side for anything but quick-flip day trades. Many stocks are quite extended and need to rest, plus there are a great number of rising trend lines which are prime pivot points for initiating shorts if they get crossed.
My game plan heading into tomorrow is outlined in tonight’s video, and there are several potential plays on both sides of the tape. We’ve seen a recent history of big moves taking place on Thursdays, many of which were declines, so that could play a role tomorrow.
With Friday being options expiration day, and along with the fact that I have something I have to tend to tomorrow evening, there will be no Thursday Bandit Broadcast this week. I will update the Hit List tomorrow night late for any open swing positions, but will focus on swing trades on Friday. As always, I’m available for email help or via the comments here in the Hideout, so let me know if I can help and otherwise go get ’em on Thursday and Friday. I’ll see you back here with the next video on Sunday evening.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: IOC, NAV, TWM, GNK, JLL, CNW, ALB
Swing Trading Candidates:
JLL has just tagged the upper end of this descending channel, and is now starting to back away from it. With a light-volume bounce and no break of the channel, I’m expecting a move lower within the channel in the coming days. I’m looking to get short upon a break below $73, and my stop and target levels are highlighted in the Hit List post.
CNW has lower highs already in place in recent months, and now may be in the process of carving out another one if the rising trend line gets broken. I’ll be going short if the rising line gets broken at $33, looking for a move back down.
ALB is range-bound and has just bounced on weak volume back to resistance. Today the stock began to turn lower, and with so many distribution days of late, I like the risk-reward for this trade as a short sale with a stop outside of the range. My entry will be if this one breaks $42.60 on its way back down, and I’ll highlight my stop and target levels in the Hit List post.
Bullish Watch:
NFLX, DTV, GIL, LOOP, SM, FAZ, CLF, FRG, ANV, QCOR, DPS, FFIV, SRCL, IOC, PBR, VMED, CLH, NAV, EXPR, TWM
Bearish Watch:
HOG, JLL, MDC, GNK, QCOM, VFC, RIG, HAR, BEN, APC, WDC, UPS, ALB, CNW, GES, BA, R
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.
