Good evening StockBandits!
The key resistance zones we’ve been watching here for the past couple of weeks came right into view today as the major averages each got to within spitting distance of those zones. The NAZ stopped just 7 points shy of 2309, the S&P 500 stopped 3 points shy of 1130, and the DJIA got within 12 points of the 10,600 level.
From there, each of them backed off slightly, giving us both validation of those levels (again), as well as an indication that perhaps a rest might finally be a stronger possibility. The move we’ve seen off the August lows has been swift and impressive, and a rest at this juncture wouldn’t at all be a sign of weakness. Instead, even a brief pause of a few days without giving much ground back would actually be a sign of health for this market.
With higher intermediate-term lows looking like they’ve been established, the bulls wouldn’t mind making a breakout attempt a successful one once it happens. From a technical perspective, the best way to achieve that would be after some rest, rather than pushing just slightly beyond those key levels and quickly reverting back beneath them due to this market being extended in the near term. Time will reveal to us how it will all play out, but for now, the bulls have an encouraging sign tonight with the indexes having stopped just shy of key levels.
Tonight after looking through many stocks, my watch lists have thinned a bit due to the market showing some signs of fatigue after this run. That’s entirely alright, although there are a handful of names on my radar for day trades tomorrow. Once some consolidation can be put in, I would expect to see many more swing candidates showing up on the Hit List, and that may only be a couple of days away.
As a reminder, I’m still utilizing the written format of the Broadcast as I’m away from the office and therefore without the equipment I use for recording the nightly video. My family and I have done some house-hunting in recent days, and before the week is out I do expect to be back to the usual video format. To those who prefer the video, thanks for your patience. To those who prefer this written format, I hope you are enjoying seeing more text! At any rate, it’s refreshing to me to be able to mix it up a bit. And of course, your input is always welcomed.
For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.
Please leave your comments and/or questions below if you have any, I always enjoy the interaction.
Swing Trading Candidates:
NONE TONIGHT
Day Trading Candidates:
These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.
Bullish Watch:
CAB, EJ, CHRW, BKD, TCO, RRD, ISLN, GGAL, MBI, PHM, KBH, RYL, CML, CNW, ATK
Bearish Watch:
CYH, MMR, ECA, CSTR, NAV, IR, APC, CNX, SKX
The Hit List post will follow shortly with my trade levels for the swing trades.
