Good evening StockBandits!
Following a quick rip to the upside coming off last Thursday’s low, we saw the market get a bit stretched yesterday as it stumbled into the finish. The give-back of big early gains paved the way for some additional profit-taking today, but it took some time before that became a reality. This afternoon, however, after morning triple-digit gains, the sellers returned and sent the indexes spiraling lower into the bell. By the end of the session, the NAZ and S&P had surrendered more than 2%.
Aside from the somewhat expected profit-taking after a quick advance, and even with the market still range-bound, something ominous has emerged on the daily charts which I think is worth pointing out. We’re still waiting for a resolution from this range, so I’m not jumping to any conclusions here, but it would be irresponsible to ignore the short-term lower highs which have shown up over the past 4 weeks.
Time will tell if that proves to be an early signal for the next move out of this range, but for now it certainly is grounds for continued caution, particularly when follow-through is absent and overnight gaps are so prevalent. In addition, bullish setups are largely absent tonight after seeing short-term lower highs established for many individual stocks, making my list for Thursday a bearish one.
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: NFLX, ANR, APKT, RIG, APA
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “134” 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.
