Good evening StockBandits!
Last night I pointed to unfilled gaps from Friday morning as the next potential stops for a rebound, provided of course we got some follow through strength to Tuesday’s afternoon rally. Today we got that follow through, taking us right to last Thursday’s closing levels to fill the gaps on the NAZ and RUT (the DJIA and S&P 500 stopped just shy of them).
To see gaps get filled within trading ranges is not surprising, even when volatility is high in a wide range like this one. Whenever that’s the case, prices show relatively limited follow through before reversing. This morning we saw yet another gap created with a big open to the upside, so unless we see the indexes head north to take out last week’s recovery highs, this morning’s gap may get filled eventually as well.
It’s clear to see the sloppy price action in the charts over the past few weeks, as this market has done anything but put in some rest. The brief pauses it has shown were each followed by changes of direction, and that has really prevented more setups from emerging for individual stocks. Tonight, however, more are building in the charts so I’ll walk you through not only the setups I’ll be focused on for Thursday, but also several which need to mature further and what I’ll be watching for in them over the coming days.
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: GNK, JDSU, IMAX, PCX, MELI
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “119” 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.
