Good evening StockBandits!
Following Monday’s ramp higher, a day of consolidation arrived today for the indexes. The market gave back only a small piece of what was gained yesterday, which is a very healthy way to digest rallies. Momentum was absent, the downside gained no real traction, and once again we saw a decline which finished well off the session lows. Better yet, volume remained quiet.
Immediate follow through isn’t a necessity, and particularly right now with the NAZ, S&P 500, and RUT each sitting just shy of key resistance zones, a little rest is actually a good thing before a breakout attempt is made.
Rest days like today also help individual stocks to base, and there was some constructive price action going on from what I saw in the charts tonight. More candidates are beginning to emerge, and that’s encouraging as well.
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: MCO, OVTI, CSCO, GOLD, GG, DRI, NEM
Swing Trading Candidates:
DRI has already created one higher low, and appears to be in the process of creating a second one. A move up through the trend line at $42.50 will trigger a buy for me as this one begins another advance in the uptrend. The Hit List will contain my stop and target levels for this swing trade.
NEM sold off hard from its last weak bounce, and over the past several sessions, another poor advance has occurred. A move down through the trend line at $55 would constitute a break of support, and I’ll be looking to short sell this stock for a move to lower levels. As with all swing trades, my stop and target levels will be on the Hit List.
Bullish Watch:
LLL, NTES, DRI, IDT, MON, TSLA, BP, JNPR, MCO, HOT, GS, ATW, AMG, MOS, FFIV, SID, NTGR, OVTI, CSCO, HAR, SNDA, ATK, NTAP
Bearish Watch:
CRK, MHS, GDX, GG, NEM, GLD, GOLD, XEC, WDC, COV, RRC, ATHR, BKE, ORLY, WBSN, BBT
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.
