Good evening StockBandits!
Traders returned from the weekend willing to keep stocks afloat, as early strength was maintained throughout today’s session. The intraday momentum was lacking, as was the volume, ahead of tomorrow’s FOMC meeting. With a potential market-moving event on the horizon, few were willing to really step out today in boldness, and instead were willing to bide their time while waiting to see what Tuesday brings.
Technically, this market remains in very good shape. We’ve seen multiple higher lows established in recent weeks, and buyers have stepped in on every minor dip to provide support. At this point, both the NAZ and S&P 500 are facing important levels at 2307 and 1131, respectively, which could be cleared as soon as tomorrow.
Perhaps the best part of the technical setup right now is the fact that the next move could gather momentum quickly as prices move one way or the other out of their 2-week bases. No index is extended at this point, and that leaves ample opportunity for some acceleration to occur if this market can get moving.
There are a number of stocks gearing up for moves, some of which are ready now and some which need more time, but I am expecting to see more arriving daily. For Tuesday, I’m going to primarily be looking to day trades for new plays, as adding risk for multi-day positions entails higher risk ahead of the Fed. Nonetheless, there is one setup I’m eyeing for a swing trade, which I’ll also outline below.
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: AMG, PVH, ASH, VMC, VMED, BUCY, MDCO, AFL, TIE, ARUN
Swing Trading Candidates:
ARUN continues to trend higher with shallow dips marking higher relative lows for the stock in recent months. For the past 2 weeks, the stock has pulled back in a shallow fashion, digesting the late-July rally, which is very healthy. This has created a well-defined wedge pattern, and a move up through the upper trend line at $18.20 will trigger a buy for me. As with all swing trades, my stop and target levels will be on the Hit List post here inside the Hideout.
Bullish Watch:
AMP, VMED, JNPR, WFT, BUCY, JLL, CMI, AMG, BEN, FISV, PVH, ASIA, BAX, ERJ, AFL, MDCO, VMW, ARUN, GS, OEH, VNO, F, HON, WLL
Bearish Watch:
WDC, MHS, DLB, TIE, VMC
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.
Hi Jeff,
Just wondering if those prices you give are your trigger prices or does the stock need to trade above those prices? For example: Does BUCY need to trade above 64.30 and ARUN above 18.20 or just at those prices for you to get in? Thanks.
Nat
Hi Nat,
Those are the prices at which I set my entry orders at. For example, I will have a buy stop set for ARUN at $18.20.
Hope this helps!
Thanks Jeff!