Good evening StockBandits!
And Happy Father’s Day! I am a father to 1 already and have a 2nd on the way late this year – having a lot of fun and hope your families are well!
On to the market… We saw an important short-term breakout last week as the major indexes were able to push through some resistance zones (with the exception of the RUT at 670) and then hold them for the final few sessions of the week. That’s a solid performance on the part of the buyers, particularly after their consistent presence for the past few weeks coming up from the June lows. We’ve seen rallies of 6-8% across the board, which is no small feat given the persistent weakness which had been squashing each rally.
That does not mean the coast is clear yet, because the creation of higher highs will now need to be met with the creation of a higher low in order to truly shift the trend. That may or may not happen this week, but the next dip will be very telling in terms of the validity of this bounce. If the buyers are quick to step in and offer support, we’ll be able to buy with some greater confidence of a secondary advance. If instead the weakness invites more selling pressure, we’ll know to remain cautious.
As for the week ahead, I think we either see the market accelerate higher out of the small flag-like patterns which have emerged on the daily charts of the indexes, or we see a pullback kick in to test the resolve of the bulls. I’ll be keeping a close eye on last week’s highs as key areas to signal another advance, as well as the resistance zones which have turned into support for a possible move lower.
Heading into tomorrow, there are a number of plays I’m eyeing, but only for quick trades since we’re currently in a short-term trading range. I’ll outline them in the video, as usual, along with my rationale and levels for each trade.
Enjoy your Father’s Day, and go get ’em on Monday!
Leave any comments or questions down below and I’ll be happy to address them!
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: MENT, IT, NVLS, PXD, RL, AMG
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
NFLX, DECK, DPS, LVS, ARBA, IT, GIL, RBCN, CAL, QCOR, MENT, FFIV, RKT, TEN, TK, NVLS, CROX, ARUN, NYX, PXD, CMI
Bearish Watch:
HOG, RL, JLL, CSTR, AMG, ALB, ESI, CNW
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.
