Good evening StockBandits!
The winning streak of the NAZ was ended today with a minor loss as afternoon weakness made the ultimate difference. The market was range-bound for most of the day, until the FOMC decision brought new highs for the session. The strength was short-lived, however, and we saw some minor profit-taking into the closing bell.
Although some bulls may have preferred to see the market continue climbing, today’s tiny decline was about the next-best thing. We didn’t see selling accelerate once the NAZ and S&P 500 went negative, and that indicates there’s still a fair bid beneath this market for now.
Today’s achievement of a new recovery high and a finish in the red does point to some short-term fatigue, which is certainly understandable at this point. The downside reversal, at least initially, could have been far worse after the run we’ve just witnessed. Instead, minimal losses were posted on the day, so the bulls are likely to feel good about that tonight. I would expect the next dip, whenever it arrives, to remain relatively shallow due to confident bulls putting cash to work on a pullback. In the intermediate term, we’ve just seen a higher low and higher high established, which suggests more upside to come in the weeks and months ahead. We could see a quick initial rush to lock in some profits, but with the technical picture as it is, I wouldn’t expect much more than a quick pullback at this point.
With the short-term picture very tricky here (lots of recent momentum, but extended to the upside), I’m only eyeing some day trades for Wednesday. It’s difficult to make new buys here, and yet we still have yet to see real weakness arrive. Stay on your toes out there.
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: OII, SMT, KGC, CSTR, SKX
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
SRCL, MCP, KBH, OII, GMCR, NE, SWC, SMT, KGC, MDCO, OPEN, NEM, FORM
Bearish Watch:
CREE, CSTR, SKX, NTRS, SM
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.
