Good evening StockBandits!
Last week the market saw an early Monday dip on the heels of two preceding selloffs, only to reverse higher on the day and continue north for the remainder of the week. The 5-day advance took the NAZ and S&P 500 both back up through their respective mid-August bounce highs at 2555 and 1208, respectively.
Although that’s significant, at the same time we saw the RUT and DJIA run right to their mid-August bounce highs and fail to reclaim them on Friday. We may yet see those indexes participate as well, but as it stands tonight, only the NAZ has made a new recovery high. Attention was on tech last week to produce that kind of a move, but perhaps some rotation this week will prompt similar achievements for the other indexes.
At this point, we are short-term stretched after index runs from last Monday’s lows to Friday’s highs from 6-9%, so a rest wouldn’t be a bad thing to get. The bulls have momentum right now though, and therefore some continuation isn’t out of the question either.
This week we have the FOMC meeting on Tuesday and Wednesday, which is of course going to keep traders on high alert for market-moving news. That could add to the already skittish nature of this market which has been in place since July, so the charts could easily remain sloppy in the days ahead. As such, the setups on my radar are best-suited for day trades on Monday, particularly in such a reversal-prone, gappy environment like this.
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: SFLY, RGLD, EXK, GLNG, IMAX, FCX, ILMN, ULTA, MOS, WYNN, OPEN, ANR, YOKU
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “126” 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.
