Good evening StockBandits!
The major averages rallied from start to finish today, jumping 3% in the process. The rally attempt which essentially failed yesterday left many traders feeling flat-footed with today’s strength. That apparently kept the buying pressure on, as it never relented and the indexes surged steadily higher to finish at their best levels by the closing bell.
So, the relief rally has started. Some key levels were reclaimed today, but the coast still isn’t clear. We will need to see this market show some follow through on the upside in the days to come, and that’s no small task if recent weeks are any indication. Beyond that, the next dip we get will be important to gauge as well. If it finds buyers, then perhaps a tradable low has been put in. If the next dip merely intensifies by inviting more selling, then we’ll know this bounce is simply a quick rebound that can’t be trusted. For now, the jury is still out, so let’s see what we get.
There are a ton of failed patterns in the charts tonight. Paired with the nonstop selling and now this upside reversal, there are very few charts with tradable patterns heading into tomorrow. Volume still isn’t impressing, and with gaps and reversals still common, my plan is to day trade on Thursday. Once this market is able to settle down a little, I’ll certainly look to do more swing trading, but at the moment, the waters are far too choppy to venture into for more than a few hours at a time.
I’ll cover my game plan for tomorrow in tonight’s video, and as usual, if you have thoughts you would like to share or questions I might can answer, feel free to leave a comment down below.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
–
Video Stocks Discussed: BIDU, AMZN, IDT, VRX, BVF, IOC, MHK
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
IDT, VAR, LULU, VRX, BVF
Bearish Watch:
ADBE, IOC, BYI, AGP, WLP, MHK
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.
