Good evening StockBandits!
Fatigue may have finally hit the market today after a huge run from last week’s lows and an upside gap this morning. The opening hour did show some follow through to take the market to its best levels, but ultimately profit-taking kicked in to erase the morning gains. By day’s end, modest upside progress had been made but we finished well off the session highs.
There’s no doubt the buyers have had momentum since last Tuesday, and they’ve produced quite an impressive bounce as a result. We’ve rallied past the mid-August bounce highs, and have held above those levels on a closing basis for three days now. With that said, however, we’ve come a long way and a rest may finally be in order.
With the jobs report due out Friday morning and with a 3-day holiday weekend ahead of us, traders have some motivation here to book some gains and lighten up. That could produce a pullback or simply some basing action (much like today’s), and either would be technically healthy to see at this point. The bulls do have momentum on their side for now though, so they just might press their luck.
I continue to see very little on the daily charts in terms of setups which are high-quality enough to warrant new swing (multi-day) entries. However, we’re still seeing setups emerge for single-day plays, so that will remain my focus ahead of the long weekend.
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: RENN, AUY, ADSK, MGA, FSLR
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “113” 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.
