Good evening StockBandits!
Friday morning brought with it some lively action as right from the open stocks began to suffer. The selling accelerated ahead of Bernanke’s speech, thanks largely due to a halt in INTC after they guided lower. Once a bounce finally arrived, it marked the low of the session as a huge V-shaped recovery set in. That carried stocks well into the green in short order, where they remained for the rest of the day.
The major indexes are now once again testing former support levels (which are now serving as resistance) from beneath. To see a continued bounce from here would mean those levels get reclaimed, which would be positive on a technical basis. In addition, last week’s downside helped to validate key levels of support, such as NAZ 2100 and S&P 500 1040, so we’ll be able to keep those pivots on the radar going forward as well.
For the week ahead, things could remain tricky. We have a slew of economic data on the docket, and a long weekend to follow (with the market being closed for the Labor Day holiday on Monday, September 6th). That gives us ample reason to stay on our toes, so it’s a time to keep stops in place and remain selective with new trades.
In looking through a ton of charts this weekend, I found a pretty mixed bag out there. Some stocks are acting well, while others are still in poor technical condition but attempting to bounce or stabilize. Those charts in particular will need more time to set up potential plays, but there are a handful of names I’ll be focused on for Monday.
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: PWRD, NFLX, JKS, AEO, MCP, ISLN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
RINO, NFLX, IT, JKS, AUXL, MMYT, DRQ, AEO, PWRD, INTU, MCP, SYMC, AKAM, INFA, ISLN
Bearish Watch:
CBOE, LLL, DGX, RIMM, CRL
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.
