Good evening StockBandits!
The downside gap which was looking so likely last night proved to be a short-term exhaustion gap, offering some intraday potential on the long side. The indexes set their lows in the opening minutes, and although they didn’t recover the entire gap, they were able to erase a large amount of it.
In the days and weeks to come, I’ll be watching to see if this decline is able to stop shy of the July lows. That would be very technically healthy to see an intermediate-term higher low established (relative to the July low), and would set the stage for a rally into year end. It’s far too early to place any expectation whatsoever though, I’m simply pointing this out as a possibility. We’ve broken the string of short-term higher lows, but that doesn’t necessarily mean the indexes are headed right for new correction lows. It’s possible, but I’m looking to keep an open mind as always.
With back-to-back overnight gaps in the past two sessions, and with the market having made a big move off Monday’s highs, it could be that we see a consolidation day tomorrow. The easy money has been made on this initial move lower, so I’ll be eyeing some potential longs on Friday.
Keep in mind, it’s a summertime Friday, and we’ve seen a sizeable move already this week. If the afternoon arrives and not much is happening, it’ll be our cue to do very little.
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: MA, MMYT, GDX, BID, ADM, TRW
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
GDX, PCLN, AGU, POT, MMYT, BAX, MDCO, MOS, CF, CMS, SLW, TRW, CAGC, ADM, BID
Bearish Watch:
APOL, ESI, TMO
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.
