Good evening StockBandits!
The jobless claims number this morning left traders feeling a bit uneasy, and as a result, we saw a soft open accompany that. However, the indexes lifted once again off their session lows to finish only slightly negative, which is a recent theme we’ve seen on pullbacks. The short-term uptrend is still intact from the July 1st low, and that’s also adding to the confidence of the buyers who are keeping a bid beneath this market.
Tomorrow morning, we’re likely to see a sizeable gap in one direction or another as the nonfarm payrolls number is released. That highly-anticipated report is due out an hour before the opening bell, and today’s inactivity reflects on the attention being given to tomorrow’s number. The big topic of the economy right now is jobs, so there’s little surprise the market is watching it so closely.
As with any news, it’s not so much what the news is, as much as it is how the market responds to it. I’m no economist, and don’t care about the actual number, but I will be gauging the market response closely. If we see a gap down, I’ll be monitoring it closely to see if the buyers step in to buy another dip. If we see a gap higher, I’ll be watching to see if profit-taking kicks in. Either way, tomorrow’s action could shed some light on the current psychology of this market, despite the fact it’s a summer Friday.
I will be taking it pretty easy tomorrow afternoon if the morning fireworks fail to produce some good price action (trend day, gap fill, etc.), but there are some setups on my radar. And as I mentioned last night, I would expect to see more patterns emerging after the past few days of healthy rest for this market.
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: ASH, BUCY, VALE, NEM, AMP, CMI, BEN, DRC, V, CERN
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
AMP, VMED, TEN, BTU, ISLN, NZ, SDRL, WFT, BUCY, AN, NTGR, CMI, EL, R, SOHU, DPZ, AMG, DRI, BEN, OII, OIH, DRC, MET, FISV, VALE, ASH
Bearish Watch:
CERN, WDC, CEPH, ZION, MHS, AKAM, DLB, CBOE, V, NEM
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.
