Good evening StockBandits!
Ahead of a long holiday weekend, the buyers showed no hesitation in putting capital to work last week. Recent tests of key support levels such as 2100 on the NAZ and 1040 on the S&P 500 apparently inspired the bulls, and they responded by defending those zones. By the end of the week, the indexes were left within spitting distance of key resistance zones.
Perhaps the most important element to last week’s rally is the possible creation of higher intermediate-term lows. That’s been a possibility I’ve discussed here multiple times since the July rally began, noting that a pullback which stops shy of those lows could evolve into a bullish technical event. At this point we’ve gotten the pullback, it did stop short, and we’re now turning sharply higher. More technical proof will be needed to truly confirm the August lows as a higher low (like clearing the August highs), but for now that scenario is very much in play. As a result, we could see dips get bought going forward.
I went through many charts this weekend in search of setups, but more time is truly needed here to allow not only this market, but individual stocks alike to rest up and digest the move from last week. It was a big move, and that means some consolidation is needed. I don’t want to chase here, as the easy money has most likely been made on this initial move off support, but we could still see secondary advances in the days ahead. Therefore, we need to wait for bases to form in order to allow that secondary move to begin. That leaves me eyeing short timeframes for Tuesday’s session, although a little rest in the next couple of days could go a long way for this market (and the bulls).
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: JKS, FFIV, GDX, FOSL, IVN, CNW, STRA, RIMM, CAGC, VMED, CECO, DLB, LFC
Swing Trading Candidates:
NONE TONIGHT
Bullish Watch:
FFIV, VMED, ARUN, MMR, TSLA, CAGC, ARNA, GDX, AEO, HOGS, FOSL, EXXI, HGSI, CECO, IVN, DV
Bearish Watch:
CRK, CNW, ESRX, DLB, STRA, RIMM, LFC
The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.
Just a “heads up”… Wednesday evening is the beginning of the Jewish New Year. So many Jewish Players will leave early on Wednesday and be out on Thursday and possibly Friday. So I am expecting a low’ish volume week especially Wed–>Fri. For me that means possible higher volatility and spreads in individual stocks. And tricky lunch time action.
Hey Jon,
Thanks for the reminder, I think that might coincide well with a market rest if we happen to see one…a light-volume rest would be great for this market. Appreciate you pointing this out!