Good evening StockBandits!
Last week started with a gap higher and some follow through, and it ended with a shakeout move to the downside. In between, there wasn’t much taking place. In the end, gains were made, and yet the market was able to move sideways as well. That’s win/win for the bulls.
The uptrend lines from the July lows were tested, and held, and once again the major averages have an opportunity to push past resistance zones in the days ahead. The rest was healthy for the indexes, and for individual stocks alike. Even the dips were kept shallow, thanks to buyers stepping in to lift stocks from their session lows each day for the 2nd straight week.
The underlying bid beneath this market is giving few reasons to be short right now, if any, so my focus is on the long side until that changes. In the short term, I’ll key off the rising trend lines which began on July 1st, and watching to see if the series of higher lows and higher highs is able to continue.
It’s sure to be another interesting week ahead of us with the technical situation we’re in, as well as an FOMC day on Wednesday. It’s as important as ever to stay disciplined, but there are setups to be traded.
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: CENX, BEN, GDP, FISV, CMI, BAX
Swing Trading Candidates:
CMI recently cleared major resistance at the $77 area, pulled back to test it, and has held above that zone. A new high would be made at $82.40, and I’ll be a buyer for a swing trade if that level is crossed. As with all swing trades, my stop and target levels will be posted to the Hit List here inside the Hideout.
BAX saw a huge correction earlier this year but was able to stabilize for a few months and stop trending lower. Since then, it has started to slowly work its way back up, and if it can push through resistance at $45.35, it could see an acceleration move. I’ll be a buyer if that level is taken out, and my stop and target levels will be on the Hit List for this swing trade.
Bullish Watch:
VMED, TEN, BTU, NZ, WFT, BUCY, AN, CMI, EL, SOHU, DPZ, BEN, DRC, FISV, HRC, VALE, SHLD, PVH, GNK, EMN, EBAY, TIF, LNC, CRUS, ALK, IDSA, BIDU, MTL, WYN, NYX, GDP, CENX
Bearish Watch:
WDC, V, THOR, RTN, RRC
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.
