Good evening StockBandits!
Optimism over MFE’s takeover by INTC was erased this morning as Initial Jobless Claims reached their highest levels since November 2009. Earlier this week, it was a bid for POT which helped fuel the market higher, but today it was all about economic concerns rather than M&A. The open was met with heavy selling into mid-day, when stocks were able to stabilize but couldn’t recover much by the bell. In the end, the bounce of the past few days easily negated with today’s weakness.
The poor finishes of the past few sessions have been noted here nightly, and I’ve stated my concerns with the trustworthiness of the bounce. Today as we saw the decline take away the upside progress made previously this week, it reinforced what I’ve been sensing from the charts. As a result, I’m looking at the short side for several new plays as the indexes now lean on short-term support.
It’s been a pretty slow week in terms of trading ideas, and my watch lists have been rather sparse up to this point in the week. However, more setups are quickly appearing and I’m expecting to see more arrive in the days to come. While I won’t be forcing trades here late in the summer, I will still be seeking out opportunities to put capital at risk when there’s potential for reward.
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: SRS, BAC, SM, XCO, VMW, LLL
Swing Trading Candidates:
VMW sold off hard last week when it broke its recent uptrend line, and in the past 5 sessions it has bounced back up to test that zone. A turn lower from here could arrive any day if this stock is going to carve out a lower high, so I’m watching this one for a potential rollover move in the days to come. A break of the $77.20 level would mark a multi-day low, and I’ll be using that as a pivot for going short. My stop and target levels for this one will be on the Hit List, as with all swing trades.
LLL has been trending lower for months, and for the past several weeks it has been able to rest. Currently it’s resting just above support, but if that gets taken out, the stock could accelerate lower. I’m watching $69.40 for a breakdown to trigger a short sale, and will have my stop and target levels on the Hit List since this one is a swing trade.
Bullish Watch:
ATK, CAGC, AUXL, SRS, AAP, AEO
Bearish Watch:
XEC, AMG, OIH, RIG, LLL, WDC, THOR, RTN, CRUS, VMW, BBY, GS, CSC, FSLR, V, CME, ICE, BAC, SM, NETL, SPN, BHI, CEDC, XCO
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.
