Good evening StockBandits!
A highly-anticipated jobs report on Friday morning failed to impress, and overnight jitters from Europe were further exaggerated ahead of the opening bell. The opening gap left the indexes 2% lower, and a feeble attempt to fill the gap ultimately failed after the first hour of the session. From there, stocks continued their decline in a steady fashion, trending lower throughout the day as the major averages posted losses in excess of 3%.
Friday’s weakness brought the lowest closes for the DJIA and S&P 500 since this correction began, although intraday lows from May weren’t penetrated. The NAZ was the exception, holding above the lowest close in May by about 1%. Each of the major averages saw increased volume on the decline, although volume remained below average.
Upside follow through continues to be the thing this market is lacking, and even though some support zones have become evident on the daily charts, there’s certainly no guarantee that they’ll hold. Some mixed signals are coming from the indexes, but the common thread is that they’re each struggling to show strength on anything but an occasional basis. Each bounce is still getting sold, which is a reminder that added caution is still best (just as it has been for the past several weeks).
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: SNDK, AZO, MAC, FTI, ATW, BIG, MHP
Swing Trading Candidates:
BIG turned lower on Friday and now is resting on key support after several weeks of basing action. This one has ample room to move lower if it breaks support, so I’m watching for a breakdown at $33.90 to initiate a short sale.
MHP isn’t far from support within this descending triangle pattern, so I’m on the lookout for a breakdown any day now. My trigger for a short entry will be the $26.90 level.
Bullish Watch:
SNDK, AZO, QCOR, ANV, ERY
Bearish Watch:
DRI, OII, ADM, CF, MON, DWA, CECO, SHLD, MTB, ITRI, PII, MAC, OIH, PBR, LPS, ATW, SLB, CCJ, DO, MHP, HAR, MEE, F, LLL, FTI, SII, TRLG, PWRD, TDW, NE, CEDC, RIG, BIG, ESI
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.
