Good evening StockBandits!
Wednesday’s weakness carried over into this morning with traders unable to embrace the dip for another turn higher. A sizeable opening gap to the downside saw a feeble bounce attempt into mid-morning, but little headway was made and it was used for selling.
From there, stocks continued lower for the remainder of the day, and despite a late-day bounce from the worst levels of the session the indexes finished down over 3% across the board. What’s perhaps most disturbing about the price action was the orderly nature of it, as no panic moves were made and yet the DJIA was down over 520 points at its low.
The fear index is certainly climbing with the VIX now back above 41, but there’s plenty of room for it to climb further. There were no safe havens either, as traders literally headed for the sidelines to try to dodge some of the damage. When it was all said and done though, the DJIA and RUT each made new correction lows by undercutting their August lows, while the S&P 500 and NAZ made steady headway toward their recent support zones.
Tonight in the charts, there’s little to show but overall carnage, and even though this market is oversold short-term, we could still see further declines. With tomorrow being Friday, the ever-present weekend uncertainty could play a factor, alongside the widespread hatred of stocks. It’s still a good time to be in cash preserving capital, which is where I’ve been on an overnight basis since July 25th (thankfully).
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: VRUS, AGP, VPRT, TIBX
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “130” 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.
