Good evening StockBandits!
The market bounced back slightly today from a soft open as traders tested the waters on the buy side. However, it was a timid effort as the indexes finished near flat on the day, unable to gather any lasting upside momentum. It truly felt like summer today as all the action came early in the session, with indecisive, range-bound action for the final few hours of the session.
On the daily charts, the indexes have been able to stabilize in the past couple of sessions, but no relief bounce has yet arrived. If that continues to be the case, the daily charts will largely take on the appearance of bear flag or pennant patterns, with last week’s hard selloff being followed merely by consolidation rather than some kind of bounce.
The longer the market spends near current levels, the more it will naturally be working off the oversold conditions without any advance. That could open the door up for another wave of selling, so it’s still a time to exercise caution out there.
There are very few stocks out there tonight with well-defined patterns, as most of them just need a little more time consolidating to get ready. That leaves me with a pretty limited list for Tuesday, which is alright, especially if we see another light-volume session like we did today. On such days, doing less is best.
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: POT, CROX, IOC, OCR
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
POT, CROX, IT, BAX, HRC, IOC, ATK, PPO, AUXL, STR
Bearish Watch:
JEC, THOR, TIE, GS, F, ROST, OCR, TRLG
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.
