Good evening StockBandits!
The major averages approached key levels for the second straight day today, although once again those zones were not penetrated. After backing off their best levels in Tuesday’s session, a soft start this morning opened the door for some profit-taking to kick in. Instead, the buyers got to work, bidding stocks slightly higher to take them positive on the day.
Tonight, the market is sitting just shy of key resistance zones (2309 NAZ, 1130 S&P 500, and 10600 DJIA), so we could see an attempt at a breakout take place any day now. And while the buyers do have momentum, this market is stretched at the moment and badly needs to rest. A straight-up run of 200 points on the NAZ, for example, and a push right through a key level may prompt more selling than buying, so this is an important time to stay on our toes.
In terms of new trades, the one-way nature of this 2-week rally leaves only brief bases for the most part on the daily charts. So without chasing stocks too far here, my opinion is that the best way to offset new buys is to keep my timeframe short, which means day trades for Thursday. There are a couple of short candidates as well, but essentially I’d like to see some rest arrive before I look to add much overnight exposure at current levels.
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: QSFT, CREE, CSTR, SKX, RIG, CHRW, TCO, NZ, JKS, XEC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
VPRT, RIG, HCP, TSLA, SPRD, CHRW, TCO, ISLN, IPI, QSFT, NZ, OII, PSA, SPG, LEAP
Bearish Watch:
MMR, JKS, ECA, XEC, CREE, CSTR, SKX, SAFM, COG, VIP
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.
