Good evening StockBandits!
If this market is anything, it’s streaky. We saw that 2 weeks ago with nonstop selling, then last week with nonstop buying, and it’s carried over into this week with another 2 sessions of strength. Today’s gains were impressive, especially considering the overbought conditions this market is facing in the very short term. Nonetheless, the shorts are still covering and the buyers are still wading back in.
Tonight’s earnings report from INTC has thus far been greeted with more optimism, and that may very well produce another gap to the upside tomorrow morning. As a trader, I always respect momentum when it’s present (regardless of direction), and yet I know when moves get stretched, exhaustion gaps can prompt reversals. So with this bounce getting rather long in the tooth without much rest at all, I’m going to be on my toes tomorrow morning to see how the morning gap gets treated. We could see a gap fill reversal kick in, so keep a level head among the hype out there that this market is suddenly generating.
This is a very tricky spot to be adding new buys for anything but very short-term trades, and yet it’s also tough to short into this strength before it finally shows signs of fatigue. For that reason, my list for Wednesday is a limited one, and so I’ll be focused fewer stocks tomorrow and looking to capitalize on whatever moves come our way.
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: ROVI, RGLD, RS, RTP, SLW
Swing Trading Candidates:
SLW failed at resistance a few weeks ago and has since turned sharply lower. The bounce of the past week has not been impressive, and has created a clean rising wedge pattern. I’m watching for a breakdown at $19.10 to confirm this pattern and get short the stock. My stop and target levels will be on the Hit List post here inside the Hideout.
Bullish Watch:
NTES, PPO, ROVI, AAP, VQ, ENTR
Bearish Watch:
RGLD, CRK, RS, MTL, SLW, RTP
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.
