Good evening StockBandits!
The market recovered somewhat quickly from a poor start this morning, erasing a small downside gap to move into positive territory. The first pullback brought the market slightly negative again, but it also produced a higher low from which the market rallied. While things did level off later in the day, the indexes were able to post gains for the third consecutive day.
The issue with the state of this market right now is that after three consecutive advances, the indexes are still beneath some important levels (which I’ll point out in tonight’s video). That may in itself limit the magnitude of this rally, which means it could fail with relative ease should we happen to see selling pressure return.
One other problem with today’s rally was the fact that volume was quite light. That points to very limited firepower on the buy side at this point, and suggests there’s little conviction that this bounce will stick. That still remains to be seen, and it’s possible that a continued rally from short-term support zones could take place, but so far the long side appears to have limited appeal. Shorts are in little hurry to cover, and the bulls are still gun-shy after weeks of losses.
My watchlists tonight are notably sparse. Sometimes that’s the case, and it will certainly change, but that’s always a pretty good indication to me to keep my risk in check until there’s a greater abundance of opportunity. As a result, I’ll be a day trader tomorrow with just a handful of candidates.
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: NOC, FTO, HOC, NTES, TEX
Swing Trading Candidates:
NONE TONIGHT
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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.
