Good evening StockBandits!
Strength in overseas markets set the early tone today as futures pointed to a gap up open. That was soon followed by another upside jolt for the market when favorable economic data was released, taking the market to its highs shortly after. From there, things leveled out as the market remained juiced after reclaiming some very key levels. In the end, it was a huge start for the new month, despite the weak historic seasonality of September.
At this point, the bulls need to maintain what they achieved today. They can do that by either adding to today’s gains in the near term, or by simply showing up on the dips so that the recent lows are able to hold. That would help to confirm higher intermediate term lows (compared to the July lows), and would be a very bullish development for this market as the year progresses.
As traders, it’s easy to want to rush out tomorrow and buy everything in sight, but this isn’t a buy-your-initials kind of market. Momentum has been fleeting thus far in 2010, and that’s worth respecting until it changes. The more prudent move for tomorrow is to take what the charts are offering, and tonight that actually isn’t a lot. Many charts had been creating bearish patterns, but today’s move negated most of those bearish consolidations. We now need to allow more setups to emerge, and not become over-anxious in the meantime.
Looking slightly farther out on the horizon, I do think it’s worth noting that as the year end gets closer, performance anxiety could really play a big role in this market – particularly if it catches a bid. Fund managers won’t want to be left behind if this market gains traction, so let’s keep that in the back of our minds going forward. It just might be that we’ve seen the lows for the year. That’s no prediction, just an observation with the higher low now becoming a bit more of a reality after today.
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: TSLA, FFIV, FTI, SWC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
DPZ, RIG, NFLX, DV, CROX, AUXL, EBAY, RVBD, INTU, TSLA, FOSL, MMR, NTES, MCP, SYMC, VCI, ARCC, CMG, FFIV, FTI, SWC, FAS, UYG, XLF
Bearish Watch:
None tonight
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.
