Good evening StockBandits!
In the market, no two days are alike. And that was particularly true of yesterday and today, as we saw similar starts, but very different finishes. Wednesday’s opening gap to the upside was quickly sold, and that sparked a sharp downside reversal which left the indexes well in the red. Today however, we saw a positive start which pulled more cash off the sidelines and into the market as traders accumulated stocks to finish just a short distance from the best levels of the day.
The market has been fickle of late, no doubt keeping traders on their toes after some pretty smooth moves in recent weeks. The past week has been very different though, as follow through has been incredibly tough to come by. And as we head into a summertime Friday tomorrow, that may ring true yet again.
Right now we’re at an interesting spot. There’s potential that the dip which began last week and ended with Tuesday’s low turns into a higher low on the daily charts (as compared to the July 1st low). That would be technically significant, no doubt about it. What needs to happen is a push through last week’s highs, and as of yet, we haven’t seen that.
If the indexes can push through, close above, and hold those levels, then we could see a summer rally kick in. That could be an impressive one too, with the combination of short-covering (as bears worry that the lows have been put in) and accumulation (as bulls rush in from the sidelines after a rough year) driving stocks higher. That’s just one scenario of many which could play out, and I’m eager to see what happens.
For now, I’m off to celebrate my 35th and get away from the screens for a while. Make it a great evening, and go get ’em on Friday!
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: DLB, BEN, OII, CMI, HOT, MYGN, YGE, RIMM, BVF, CCJ
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
DRQ, YGE, RIMM, CEDC, SOL, WLP, BVF, ARNA, TSLA, AAP, STP, AKAM, CPNO, ADTN, EXPR, PCLN, QLIK, XLNX, RBCN, ALTR, AGU, SLXP, SDRL, HOT, CCJ, BEN
Bearish Watch:
RIG, MYGN, ANV
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.
