Good evening StockBandits!
The failure of stocks to hold onto solid gains yesterday morning gave way to a gap-fill and ultimately a lackluster session as strength faded and the indexes faced new potential lows. Today, however, a gap up open saw only a short-lived attempt to fill before the buyers stepped in to stay for the remainder of the session.
By day’s end, the major averages had tacked on 3-5%, showing that the bulls are taking a stand – at least for now. The point gains were impressive to say the least, which puts a little distance between current prices and the short-term support zones which are getting defended. Today’s rally took the market to multi-day highs, and by this afternoon the gaps from last Thursday morning were getting partially filled (although only slightly).
I’ve mentioned the possibility for the past couple of weeks that we could see a wide trading range develop after the late-July and early-August selloff, but last week’s bounce failure left that possibility in jeopardy. Today’s rally from support brings it back to light, so I’ll operate on that thesis until it’s proven wrong.
In terms of individual charts worth highlighting, there are a few, but in such a volatile environment with wide swings and frequent changes of direction, the kinds of bases I’d swing trade from aren’t present in the charts. Additionally, with overnight gaps still being seen regularly, it’s very tough to manage multi-day risk effectively since an overnight gap can change both entries and exits derived from the chart the night before. So for tomorrow, I’m eyeing several day trades. With all this movement, that’s offering both opportunites as well as an effective way to manage risk.
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!
Video Stocks Discussed: VMED, SINA, MCP, TZOO, MTL
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “106” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
