Good evening StockBandits!
Following a morning pop and a mid-day drop, the market found its footing this afternoon to get back on track and add to yesterday’s gains. This took each of the indexes further into the unfilled gaps from last Thursday, while simultaneously putting more distance between current levels and the support zones we just left behind.
Tuesday’s volume was lacking on the upside, but it was a solid advance and it found follow through today – both of which are of greater importance than volume. We’re still caught in a low-level but very wide trading range over the past few weeks, with apparent tests on the horizon. On the upside, I’m watching the gaps from last Thursday, followed by last week’s highs. There’s ample room on the downside at the moment before support is threatened, but the August lows are the lines in the sand.
So while this second bounce is in effect for now, the fact remains that capital preservation remains a top priority in this tape. We’re caught in a short-term range, which means frequent reversals and continued volatility are likely until we break free from the range, whether on the upside or downside. That, combined with the charts of individual stocks leaves me eyeing day trades for tomorrow’s session, as that’s where the activity is right now (as well as the most effective timeframe for managing 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: SCCO, NE, EVEP, TZOO
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “107” 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.
