Good evening StockBandits!
The rally continued today despite a sloppy morning as the NAZ filled an opening upside gap to go negative ahead of the lunch hour before a lasting turn back up took hold. From there, it climbed steadily higher to post a new recovery high on a closing basis. Meanwhile, the S&P 500 reclaimed 1208 on a closing basis, opening the door for the RUT and DJIA to potentially follow suit in the days ahead if the buyers stay in gear.
One of the things which has made this market so tricky is that for several weeks now since the early-August lows were established, upside runs have only lasted a few days and they’ve been sharp. Pullbacks from them have produced steep declines, allowing for no lasting upside follow through. So tonight after a big 4-day run higher, the big question traders are asking is whether this time will be different and we’ll actually see continuation, or if instead it will result in another harsh round of selling.
While that question remains outstanding for now, our job is to focus on opportunities for short-term plays. The most important indexes in my opinion are the NAZ and S&P 500, and they both cleared key levels today. However, the RUT and DJIA will need to lend a supporting hand by showing some participation as well, and as of yet we still don’t have that.
There are a few names I’m focused on for tomorrow’s session, along with a couple of setups which are building that I’ll share with you shortly. Keep in mind it’s a quadruple witching options expiration day, which always brings to the table some unknown motivations when it comes to the movement of options and futures. Keep that in mind and respect the price action ahead of the weekend.
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: GLNG, JAZZ, PAY, ULTA, IMAX, SOHU
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “125” 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.
