Good evening StockBandits!
Stocks turned sharply lower last week after peaking and reversing to the downside Tuesday. That was followed by harsh selloffs post-FOMC on Wednesday afternoon and throughout Thursday, before a modest dead-cat bounce kicked in on Friday to hold support zones from August.
The mid-week selloff took the RUT and DJIA to new correction lows, while the S&P and NAZ worked their way lower within their respective multi-week zones. Each of the latter two indexes did break down from their rising channels, however, which is a technical breach not to be ignored.
This constitutes a test of support for at least two of the indexes, but although they finished above key levels Friday it doesn’t mean they’re at all out of the woods. It’s possible the lows are able to hold and we rally back up to keep the ranges alive, but there’s also a good chance last week’s selloff is the start of the next meaningful move with a downside resolution of the ranges. Time will tell, but needless to say, cash remains a great place to be.
In searching through many charts this weekend, there continues to be a distinct lack of tight setups for swing trading. Barring stops which are 8-12% away from entries, there’s nothing to point out at the moment for multi-day moves. There are some setups which are showing some single-day potential, so that’s where my focus will be for Monday.
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: TIBX, DNKN, OSG, RIG, RAX, VPRT
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “131” 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.
