Good evening StockBandits!
Stocks opened with some strength this morning, but it was quickly erased as the gap got sold during the first hour of trading to take each of the indexes negative. The buyers stepped in on that weakness though, and produced a solid run into the afternoon. At the end of the day, there was a hiccup with another round of selling into the closing bell, but all in all it was a solid day for the indexes.
The NAZ was able to break back above the 2555 level today after contending with it mid-session, and even with the pullback this afternoon off the all-important 2600 area, it finished above the mid-August bounce high. We also saw the DJIA tack on nearly 400 points from its morning low to the afternoon high before a quick 140-point dip to end the day.
We’re still seeing substantial moves on a day to day basis, but it’s still coming with overnight gaps, intraday reversals, and an overall lack of basing action (rest). That last element is the biggest key right now that’s preventing me from taking more swing trades, as it simply is keeping the daily charts of individual names (as well as the indexes & ETF’s) quite sloppy and without the tight consolidations I prefer for swing trades. Nonetheless, some good runs are presenting themselves on a day trading basis, so as I’ve been preserving capital it has still afforded some nice opportunities to profit and produce some regular cash flow.
My sense is that the volatility we’ve been seeing won’t disappear quickly, but I do believe this wide trading range has been the biggest disruption in the lack of swing candidates in recent weeks. Hopefully if we can exit this range in one direction or another, more quality multi-day setups will present themselves. In the meantime, starting each day without directional bias and taking the handful of trades which trigger is still producing.
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!
Video Stocks Discussed: GS, MS, BAC, WFC, JPM, MDR, RGLD, PAY, DV
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “124” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
