Good evening StockBandits!
The indexes stayed in pullback mode today to begin the new week as last week’s selling pressure continued. A pretty flat open was resolved to the downside, and as the day progressed, the market worked its way to new pullback lows from the May highs.
What’s been interesting about this slide is that it’s been persistent. Last Wednesday when it began, the action was just relentless selling with no real crescendo effect. Friday morning we saw a gap lower which attempted to fill, but once again late-day selling erased the rebound and postponed hopes for a short-term bounce. Even with the weekend allowing traders to think rather than simply act, it didn’t curb the selling as it just picked right back up today.
We’re getting to a point where many stocks are getting very short-term stretched to the downside, as are the indexes. The slide could go further, yes, but at this point taking on new short sales is something where extreme caution is needed due to the likelihood of a bounce increasing by the day.
With so many broken charts out there, swing trades aren’t readily available. That means my focus remains on preserving capital while seeking to create some cash flow via day trades. Clearly it’s too late to be shorting much (although a handful of charts still have room), and yet too early to be buying while the weakness persists.
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: CTSH, NUVA, WLK, DOW, COP
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.
