Good evening StockBandits!
On the heels of a couple of advances, including Wednesday’s big rally, stocks opened higher once again today. The highs were set early in the session though, as some mild profit-taking kicked in to erase the morning gains and take the indexes slightly negative. Interestingly enough, the dip stayed shallow and the buyers emerged once again before the end of the day to push the market back into the green and right near its highs by the closing bell.
While today’s rally was respectable, what’s so notable is simply the fact that we’re seeing upside follow through. So many were expecting just a fast but weak bounce before another decline, and that’s not what we’ve seen so far. The indexes have rallied considerably from last week’s lows, and so far they aren’t done yet. The shorts suddenly have been reminded of the need for respect of the upside, even though trends are still down.
The volume on this bounce has left something to be desired from a technical standpoint, yet realistically speaking, it’s actually not bad. Recall that this is still a holiday-shortened trading week, in the middle of the summer, and there are quite a few players who aren’t at their screens this week. That should keep things interesting next week, but first let’s get through Friday.
Speaking of Friday, my focus will again be on short-term plays in order to manage my risk effectively. This remains a very difficult spot to be adding multi-day exposure (in either direction), so I’m content to go home in cash tonight and heading into the weekend. There are some good setups with some short-term potential though, so I’ll cover those in tonight’s video.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: PPO, ADSK, BYI, LULU, IDT, AGP, UFS
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
PPO, AEL, DPS, IDT, LULU, BJ
Bearish Watch:
ADSK, IOC, BYI, AGP, F, RGLD, GPN, MLM, SOHU, AMED, HK, UFS
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.
