Good evening StockBandits!
Last night I noted here that the minor pullbacks we had seen in Wednesday’s session appeared to merely be a day of rest for the indexes. I pointed out the lack of importance for immediate follow through on the heels of Tuesday’s sharp rally, as it had given the market a bit of breathing room and allowed the bulls to catch their breath.
That opened the door for continuation to happen, and today we got it. Each of the indexes rallied nicely with opening-hour surges higher, pushing further away from their July lows. The DJIA challenged its July high, while the others gained ground for possible tests in the days ahead.
Perhaps the best aspect of today’s price action was the volume which accompanied it. Not only was it above-average, but by comparison to yesterday’s pullback volume it confirmed what price has been telling us lately – that there’s more participation on the buy side.
Stocks continue to come under accumulation, despite the news flow and remaining uncertainty. Earnings season may still hold some surprises, but all in all, the market has taken all the recent uncertainty in stride and has maintained the wide multi-month trading range. As we edge back toward the upper end of that range and approach short-term resistance zones, we could see some bumps, but overall the buyers are still in control since reclaiming the steering wheel on Tuesday.
Tomorrow is a summer Friday, and once again we could see volume sag as traders head out to tend to other things or begin their weekend early. The setups in which I’m most interested for tomorrow’s session are day trades. I’m holding 4 swing positions on the long side tonight, and don’t mind adding more when and if the right setups and risk/reward profiles come along. For tomorrow, I plan to focus on these names as day trades with 1% stops from entry and look to ride intraday momentum for 2-4% gains if they trigger entries.
Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, 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:
NONE TONIGHT
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.
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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.
