Good evening StockBandits!
The net changes for the indexes didn’t tell the whole story today, as is sometimes the case in the market. Not only did the market battle back from a poor start, but we saw buyers step in to offer support. Recent turns lower have not fared that well, and they’ve been able to fully run their course before dip-buyers emerged. Today was different in that regard, which is quite positive.
There’s also now the possibility that the bears find themselves trapped. The pivots in recent weeks have proven reliable, and with the bears having performed so well, their confidence has run high. Friday’s harsh turn lower and yesterday’s light-volume bounce left bears unconcerned, but today’s action tells a different story. For the second day in a row, the dip was bought, and that’s not something we can ignore – especially with a bullish engulfing bar on the daily charts.
A number of stocks are turning higher here, and may soon be able to build on the recent bounce we saw from the July lows. That remains to be seen, but for now the downside isn’t getting much traction, and the charts are our guide. As a result, I’m eyeing several long-sided plays as we head into Wednesday.
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: CTCM, QLIK, XLNX, ALTR, PWER, YGE, TS, MT, STP, JOE
Swing Trading Candidates:
STP formed a higher low just a couple of weeks ago, and since then has turned up to create a higher high as well. For the past 7-8 sessions, price has consolidated to create a large bull pennant pattern. A breakout would occur at $10.90, so I’m looking to buy this one for a swing trade if that level is cleared. I’ll set my stop and target levels on the Hit List post, which is soon to follow.
JOE turned higher after creating a higher low on the daily chart, and this one looks poised for higher prices. For the past week, this one has pulled back to create a falling wedge pattern, so I’m looking for an upside resolution to this pattern. A move up through the trend line at $25.75 will trigger a buy for me as a swing trade. My stop and target levels will be on the Hit List post.
Bullish Watch:
NTES, PWER, PPO, FDX, AMZN, YGE, SOL, CLB, NBL, AAP, TS, OIH, STP, ADTN, CTCM, EXPR, ARMH, QLIK, XLNX, MT, STEC, ALTR, CSIQ, AGU, JOE
Bearish Watch:
VXX
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.
