Good evening StockBandits!
Early optimism gave way to some quick profit-taking this morning as a gap higher on earnings news left the market a bit stretched to the upside. The selling took the market negative, where it stayed for most of the session.
Yesterday’s breakout was important in that it broke the pullback phase we had been in since the early-July high was established. The thrust of the move was enough to propel the NAZ and S&P 500 both well beyond the upper trend lines of the flag and pennant patterns they had been building, which was meaningful for today’s session.
To see a minor dip today after yesterday’s sizeable surge higher is actually a healthy way to digest the move. Not much ground was given back, and yet immediate follow through wasn’t as imperative since we had cleared the trend lines by more than just a tiny amount.
Going forward, we will need to see follow through, and sooner rather than later would be ideal for the bullish case. So while we didn’t get continuation higher today and positive news gave way to some selling, it was a minor dip and the bulls didn’t allow the market to give up a lot of ground. I’ll be keeping a close eye on things in the next couple of days to see if these breakouts can hold, but I’m not alarmed by today’s quick and shallow retreat, as it really appears to have been a day of rest for the market.
We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade. Amateurs like to gamble on earnings outcomes, but professionals avoid that risk since it can’t be managed effectively. Keep that in mind these next few weeks! I like to check both EarningsWhispers and Yahoo Finance. No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.
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: NTES, VHC, ATI, MOBI, PANL, DANG, P, ANR
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.
