Good evening StockBandits!
The weekend apparently left the bulls feeling the need for a rest, because they took one today. After spending only a brief time in positive territory, some afternoon selling ultimately made the difference as the indexes finished slightly negative on the day.
Only a portion of Friday’s gains was given back today, which is positive. Some additional basing action and perhaps even a deeper pullback would still be fine for this market, and would not threaten the uptrends which have emerged over the past few weeks. The intermediate-term situation of a higher high and higher low is still a big positive for this market, so we’ll keep that in mind even if we see more selling emerge.
Right now, there are quite a few individual charts which are bullish, although more rest is needed for the majority of them. We’ve come a long way in a short period of time, and a single day of minor downside does little to change that. The dip-buyers are still out there though, so let’s see how intent they are in the next couple of sessions to avoid letting prices slip. That should give us a better gauge of what to expect from this dip.
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: DLB, CNX, SWN, ALXN, VPRT, LEN, SOLF, VMC, JPM, GS, DRI
Swing Trading Candidates:
DRI turned lower recently and has struggled to bounce. Here it looks vulnerable to another turn lower, so I’m eyeing it for a short sale. A break of the rising trend line at $43.20 will trigger an entry for me as this one starts another leg down. My stop and target levels for this swing trade will be on the Hit List here inside the Hideout.
Bullish Watch:
USG, DLB, DO, SANM, VPRT, NTES, SMT, N, ALXN, WCC, SINA, GDP, LCAPA, SID, SOLF, LEN, DISCA
Bearish Watch:
X, MET, MON, CREE, CNX, SAFM, VMC, SNDK, JPM, BKE, WFC, DRI, SWN, UPL, GS, MET
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.
