Good evening StockBandits!
It was a pretty uneventful morning today with each of the major averages marking their highs early in the session, only to settle into trading ranges for the remainder of the morning. However, the morning lows were broken with the arrival of the afternoon, and stocks declined steadily into the closing bell.
Recent resistance zones which had turned into short-term support levels were undercut and never reclaimed, continuing the weakness from yesterday’s downside reversal. The indexes are now back inside their trading ranges once again, but the potential for a higher low to result from this pullback still remains.
Trading range price action is choppy and indecisive for the most part, so while we’re back inside the ranges, it’s best to stay selective and wait for high-quality patterns to develop. My game plan heading into tomorrow is simple and straightforward with just a few potential plays. I want to respect the frequent reversals which tend to be so common within trading ranges (now that we’re back inside one), so I won’t be building any big positions. Add to the fact that tomorrow is a Fed day (2:15pm ET announcement), and there’s plenty of reason for caution here.
I’ll cover my trade ideas and of course the market action in tonight’s video.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: MED, AMG, ADSK, BP
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
RBCN, VXX
Bearish Watch:
MED, CAT, HD, TEX, AMG, FTI, MMM, ADSK, BP, APC, CF, MON, LEN, F, WL
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.
