Good evening StockBandits!
Early selling pressure left the indexes sliding lower today as the buyers stayed away ahead of the highly-anticipated FOMC announcement. Prices were able to stabilize for a few hours, and once the news was out, it sparked a partial recovery with some afternoon strength. The indexes remained red by the closing bell, but once again they erased quite a bit of their losses.
In recent weeks, we’ve seen this occur a number of times, as even on pullback days the market sees a lift from its lows. That behavior points to the presence of buyers who are stepping in on weakness to support prices, and it’s a big part of why we’re in a short-term uptrend.
The technicals remain favorable for the bulls at this point with recent higher lows intact, but breakouts are needed for the NAZ, S&P 500, and RUT as they churn beneath important zones. While some rest is certainly healthy to see, the bulls don’t want to appear stagnant. That would indicate the buying interest is subsiding, so the next several days could prove important for the short-term health of this rally. Two big trend lines are converging quickly, and I am expecting to see a solid break of one of them take place in the next couple of days, if not tomorrow.
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: GOOG, CSC, POT, MOS, RIG, QCOR, RINO, MDCO, DRC, IOC, RDC
Swing Trading Candidates:
RDC recently cleared key resistance with a bit of an inverted head and shoulders pattern, and in the past few days has pulled back quietly to test that breakout area. Price has held that zone, and currently is sitting just beneath a trend line. A move up through that trend line at $27.15 will free up this stock to move higher, so I’ll be a buyer if that occurs. As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.
Bullish Watch:
AMP, RINO, POT, MOS, CMI, BAX, DRC, RIG, MDCO, VMW, VRSN, ARUN, RDC, DCTH, QCOR, IOC, WCC, JOE, ATK, EQIX, VCI
Bearish Watch:
WDC, VMC, WHR, ATHR, LIFE
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.
