Good evening StockBandits!
An early upside pop gave way to a gradual slide lower today as the indexes surrendered their morning gains to ultimately post another decline. By mid-day, each of the averages had moved into the red, and they never recovered. In the end, the NAZ shed more than 1% while the S&P 500 gave up roughly half of that.
The bull flag-like patterns I outlined last night saw the upper ends get tested early in the session, but by day’s end it was the lower trend lines which were being threatened. That puts the market in an interesting spot heading into tomorrow if these flags are going to be able to continue building. With it being a summertime Friday as well as an option expiration day, anything’s possible.
If prices are able to stabilize soon, then some kind of a higher low would be formed as a result. That would offer a potential secondary advance in the weeks ahead which might ultimately get the market out of its very wide multi-month trading range. However, if that doesn’t happen we should still see opportunities for moves in both directions as the range boundaries are respected.
At this point, we’re in a short-term rest phase until further technical evidence suggests otherwise. The recent sharp rally is being digested and we’re seeing some profit-taking, but the verdict is still out on whether or not this is yet another lasting reversal. Volatility remains elevated, and we’re still seeing some wide-ranging days and frequent overnight gaps. Rest has been extremely limited of late. For that reason, there still isn’t much to consider for multi-day trades at this point (since so few stocks have been able to base), although there is one candidate tonight which I’ll review shortly. Otherwise, my focus for tomorrow will be on grabbing short-term moves.
Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. The videos are not going away, but I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
MPEL remains in a solid uptrend but has put in some needed rest of late. This has formed a very clean ascending triangle pattern, so I’m watching for a breakout to get long. This stock has essentially ignored the broad market movement and continues to move to its own beat, which is why I don’t mind taking a breakout trade in the midst of what has been a range-bound market environment.
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades. Please see the Day Trading Strategy for more details on how I manage these trades.
The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.
Hi Jeff,
Been out of touch lately, It’s nice to be back. Can’t give up the day job just yet. Due to my schedule it’s hard for me to day trade but I have been watching and learning. MPEL triggered this morning for the swing trade.
I like the way you posted your charts It’s a great reference tool without having to go back to the web video.
Thanks,
Leonard
Hey Leonard!
Good to see you again, sounds like you’ve been busy. Yes, MPEL is trying to make it happen but the market has gotten quiet so we’ll see how it finishes. I’m not altering anything, just noting that there’s no momentum out there today so it may have to get going next week, the afternoon will decide it.
Yeah with the written format I know quite a few people like that, and yet others really like the video format. So what I plan to do is just keep a mix between the two so that some can skim-read and others can get the show-and-tell format. I know I can squeeze more info into the videos but not everyone has time to watch the whole thing each evening, so by blending them hopefully it will help. I enjoy both and will convey my ideas and style through each as good as possible.
Thanks for touching base and have a fun weekend!