Good evening StockBandits!
The 3rd quarter began with the major indexes marking a lasting low, and it’s possible the quarter ended with a short-term high in place as well. Today’s push to new highs was followed by a substantial reversal, and regardless of the cause, we saw some profit-taking kick in.
The market was able to rally from its worst levels of the day, which is yet another reminder of the presence of dip-buyers right now, as well as perhaps some expectation for an up day tomorrow (with it being the first day of a new quarter – more on that shortly). However, the finish in the red after marking new highs is a signal to many that some caution here is warranted. It appears, at least for now, that the indexes need a little more rest before making another push higher. If anything, today’s turnaround to the downside planted the seed of uncertainty – even if it needs more time to grow.
While I’m not a bear, and don’t care about market direction for that matter, a rest here would certainly benefit this market. It would allow the rally to possibly put together another leg up (once some rest is seen), and would also enable individual charts to form new bases from which new trades can be placed. We’ve seen short-term opportunities lately, but for the multi-day or swing timeframe, good setups with defined risk have been few and far between. Perhaps if a pullback were to kick in, it would shake up the charts a bit in a good way.
Tomorrow marks the start of Q4, and so far we’ve seen positive starts to each quarter this year. That may influence how stocks start out tomorrow, but as usual, it will be the finish that matters most.
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: VXX, REE, VECO, BAC, NYX, RYL
Swing Trading Candidates:
RYL trended steadily lower from its April peak into June, but since then has leveled out and now is trying to turn back up. A push up through resistance at $18.15 could put this one back on the move higher, so I’ll be a buyer there. As with all swing trades, my stop and target levels will be posted on the Hit List here inside the Hideout.
Bullish Watch:
CRK, CSTR, RYL, VXX, REE, PVH, WPRT, KG, WCRX, RAX, VMED, RHT, LVS
Bearish Watch:
MON, YHOO, AMAG, DRI, WFC, MET, VECO, BAC, NYX
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.
