Good evening StockBandits!
The market continues to hold up, despite having run a very long way over the past few weeks. The August lows are a distant memory at this point, we’ve hardly seen any selling, and yet stocks refuse to move lower.
That’s largely due to the presence of dip-buyers, whether they be shorts who desperately need out of losing positions and quickly buy to cover on virtually any weakness, or bulls who feel left behind by this rally and are eager to hop on board at the first sign of lower prices. Either way, the dips have been shallow and short-lived, and until that changes, it’s still a bull market in the near term.
The trouble here for active traders is that quality bases are very hard to come by. So little rest and virtually no downside lately have combined to leave many charts with the look of a one-way rally. That creates the dilemma of “it’s too early to short and too late to buy.” The continuation of this rally is increasing that frustration among traders on both sides of the tape, but it’s just part of the game.
My response to it is to simply reduce holding timeframes until better, more mature patterns emerge – and they will. In the meantime, there are some opportunities to participate, but it’s still a difficult spot to buy aggressively. Even a basic strategy like going long on new highs comes with a caveat, as it’s just not easy right now to determine well-defined, chart-based exits.
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: DOV, PVH, ALGN, STT, WFC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
FFIV, CRK, JKS, LAZ, CSTR, IPI, SANM, LEAP, VPRT, NFLX, STP, TDC, MASI, LZB, MTG, SOLF, CSIQ, YGE, PVH, SPWRA, CAT, ETN, WFT, EMR, ALGN, DOV
Bearish Watch:
SKX, SAFM, AMAG, WFC, DRI, GNW, STT
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.
