Good evening StockBandits!
Rest is what this market has been needing badly of late, and today we saw a little bit. The indexes finished right near yesterday’s closing levels, once again respecting key resistance zones which they’ve been contending with in recent days.
Some additional consolidation in this area, or even some profit-taking, would be an ideal situation for this market. A gap remains unfilled from Monday of this week, and after seeing big runs off the August lows, this market could stand to do some backing and filling. That would allow many more charts to reset patterns, and may even shake out some of the weak holders before a bigger breakout attempt is made.
Should we happen to see a breakout occur tomorrow, I’ll respect it, but I will lack trust in its ability to stick – at least initially. It’s options expiration day tomorrow, which always brings some unusual motives into play, and in this case it’s the end of the third quarter as well. With that said, if we do see key levels get crossed, it will be the close I’ll be most interested in. Regardless, in most cases this is a very tough spot to get long, as well-defined stop loss areas simply are hard to come by in a market which has seen advances in 10 of the past 11 sessions. So, stay on your toes out there tomorrow, as it could be a tricky one. I’m planning to keep my timeframes generally brief because of that, and hopefully next week will offer more opportunities to participate on a multi-day timeframe.
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: MON, RIG, FMCN, GMCR, SNDK, MCO
Swing Trading Candidates:
MCO just saw a big advance on heavy volume, which has since been followed by a shallow dip on light volume. This indicates the stock may have more room to run, particularly if it can clear the small descending trend line just above current prices. I’ll be a buyer for a swing trade if this one can clear $25.05. As with all swing trades, my stop and target levels will be on the Hit List post here inside the Hideout.
Bullish Watch:
FFIV, AEO, LAZ, MON, PH, TCO, MMYT, NZ, QSFT, RIG, FMCN, MCO, GMCR, MAN, WLT
Bearish Watch:
CREE, SKX, SAFM, COG, VIP, IAG, OSK, VMC, DGX, SNDK
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.
