Good evening StockBandits!
The market took a much-needed rest today as the indexes finished little changed and with mixed results. Momentum was absent, and that’s not such a bad thing for the overall health of the current rally. A morning gap up offered an opportunity for profit-taking, and as the indexes turned red from the gap fill, the damage was extremely limited. Stocks stabilized for the remainder of the day, making for a range-bound afternoon.
More rest would be a very encouraging sign, although that may not happen. Last week was the first occasion in a while where the dip was bought, avoiding an all-out reversal, and that points to some confidence among the bulls. We’ve seen short-term higher highs and higher lows established, and it could be that the buyers keep their foot on the pedal a little longer. This market hasn’t exactly made it easy to get on board the moves once they begin. Nonetheless, it is a very tricky spot to be initiating new buys for anything but the shortest of timeframes, as a pullback could still come at any time.
We’re right in the thick of earnings season, and combined with the current state of this overbought market, it’s certainly a time to stay on our toes. I’m eyeing several trades for tomorrow, but looking to stick with my existing swing trades rather than looking to add any more overnight exposure just yet. I suspect that will change soon.
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: RIG, DF, SMN, WDC, RIMM, PRU
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
CEDC, RIG, BVF, STEC, DF, ATW, SMN
Bearish Watch:
RIMM, MMR, PRU, CLB, SLW, SYK, MHS, FAST, GDX, NEM, CERN, NFLX, WDC
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.
