Good evening StockBandits!
Early volatility today was followed by several hours of choppy action, leaving the indexes slightly underwater by day’s end. The selling never picked up any steam, and the buyers stayed away for the most part, allowing the market to put in a day of much-needed rest.
The bulls who are invested at this point can’t ask for anything better, as this is essentially a “time” pullback more than it is in price – so far anyway. The market is pausing here after a huge momentum run, rather than giving back much ground, and that’s healthy price action. The bears and the underinvested bulls are in the same camp as they both want a deeper pullback. They may still get one, but for now, their wait continues.
In sifting through many charts tonight, I did see more stocks which have been able to put in a little bit of consolidation. Another day or two would do wonders for many charts, and if we see more rest in this area, we could have our hands full with bull flags and pennants on the daily chart. Right now, the key is to wait and allow those charts to set up.
There are some setups I’m eyeing for tomorrow’s session, and I expect there to be more coming in the days ahead.
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: ORCL, SPRD, STP, PRGO, CSTR, VMC, ICE
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
MMR, SPRD, DO, SWC, OPEN, GOL, PRGO, ORCL, ADM, PAAS, BG, STP
Bearish Watch:
CREE, XEC, CSTR, SKX, COG, OSK, VMC, YHOO, BEN, URS, ICE
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.
