Good evening StockBandits!
Right on cue, the market followed a weak Friday with a strong Monday, continuing the back-and-forth range-bound price action we’ve seen so much of lately. And it was another rather convincing rally from a price perspective, with the NAZ adding 1.3% on the day. However, it’s again important to remember that we’re still beneath key levels (as discussed in tonight’s video), as well as the fact that today’s advance came on lackluster volume – particularly compared to Friday’s selling.
So, the trading ranges are still intact for now, and volatility continues to be elevated with the frequent gaps and wide-ranging days. Tomorrow the bulls have a shot at reclaiming some important levels, but they’ll have to prove it if they want to propel this market out of this short-term range. If they don’t, we could see yet another slide back toward the lower end of the range.
It’s a trader’s market right now, but really and truly just for day traders. The limited follow through and frequent overnight gaps have prevented much opportunity from a multi-day swing trader’s perspective, which means cash continues to be a good thing to have on hand. Eventually we’ll leave this range, but until then we should expect more of the same. Stated otherwise, let’s require that the market prove it’s back on the move rather than chasing a rally or selloff and hoping that this time it’s going to see follow through. At some point it will, but so far it’s been false-alarm city and that’s a good reminder to stay on our toes. I’m sticking with day trades tomorrow for that very reason.
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: OPEN, ONTY, MCO, RBCN, CIEN, CREE
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.
