Good evening StockBandits!
Today arrived with something unusual in tow: follow through. After Monday’s rally back up toward the upper ends of the recent trading ranges, the stage was set for either another failure at resistance or a push through, and the latter is what we got. A positive start never saw profit-taking, and the market trended higher intraday to finish right at its best levels of the session.
From a technical standpoint, few would have been surprised to see some ground given back today after yesterday’s light-volume rally. That hardly seemed the ideal scenario for a push back up and out of the trading range of the past few weeks, yet that’s exactly what happened.
It was positive for the indexes to reclaim some important short-term levels, but there’s still plenty of work yet to be done by the bulls. We’ll need to see some follow through sooner or later, as well as some stronger volume to help confirm this move. In the coming weeks, we’ll also need to see some sort of a higher low established on the daily charts of the indexes, as that will really help to create some interest on the long side.
The verdict is still out as to whether this is simply end-of-the-quarter window-dressing, or some actual buying and accumulation. One thing is for sure…with the July 4th holiday just a few days away, we’re approaching typically the lightest-volume weeks of the year. That doesn’t suggest we’ll see a big pick up in activity, so the jury may be out until once that milestone has been passed. Price will have to be the focus until then.
The charts of individual stocks remain quite sloppy with all the recent back-and-forth, so my watch lists are still quite limited. I’ll be focused on a handful of short-term plays for Wednesday’s session.
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: LAVA, ZAGG, SQNS, MOS, RBCN
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.
