Good evening StockBandits!
After a huge move Wednesday which cleared important levels, the bulls could have taken the day off today. Instead, they held their ground throughout the day, giving back nothing and finishing strong to post another nice advance. And although today’s move paled in comparison to yesterday’s, it was no less important with the follow through it provided.
The indexes are now pushing toward resistance areas which could offer important tests, such as 2236 on the NAZ (the low end of an unfilled gap), and 1100 for the S&P 500. It could be that we rally right up to those zones before a rest is seen, and there’d be no harm in that. There is plenty of overhead this market will be facing in the coming weeks if this rally is able to stick, so we can expect there to be some phases of consolidation and rest along the way. At the moment though, the buyers have some momentum.
Tomorrow is of course Friday, but it’s no ordinary Friday. Not only is it considered by many to be the last summertime Friday (for trading purposes), but it’s also the last day of trading before a 3-day weekend with the market being closed Monday for Labor Day. So as the afternoon approaches, keep in mind that many traders will be looking to step away early, and if the market feels drifty, don’t force any trades. With all eyes on the nonfarm payrolls report in the premarket, we could see a substantial opening gap in either direction, depending upon how that news is received.
It’s a good time for caution, so think before chasing stocks after the move of the past two sessions. A little rest would be ideal, so if tomorrow marks the beginning of a brief pause, embrace it and do as little as possible.
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: ESI, ARNA, FTI
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
APOL, ESI, DV, CROX, JKS, APKT, RVBD, AEO, TSLA, ARNA, FFIV, FTI, SWC, RAX
Bearish Watch:
CREE, ESRX, GS, COG
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
