Good evening StockBandits!
The major averages recovered from a shaky start this morning and headed higher on the heels of Wednesday’s big rally. However, once the S&P 500 tagged 1204, profit-taking kicked in and never stopped. From there, a steady pullback took stocks lower into the closing bell, erasing about a third of yesterday’s gains.
To see the market pull in a bit after making a 545-point advance just since Tuesday’s low is not a big surprise, particularly after the S&P filled last Friday’s gap. However, part of the shift to the sidelines was likely tied to Obama’s scheduled speech tonight and the uncertainty surrounding it. Traders avoid uncertainty as a way to dodge risk, and with the President taking center stage tonight, it could produce a gap tomorrow in either direction.
In terms of individual setups tonight, there are still some trying to build in the charts but there’s far from an abundance of them. Given that this market remains range-bound, and therefore reversal-prone, my interest lies with day trade candidates rather than taking overnight exposure or adding over-the-weekend exposure in tomorrow’s session.
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: MELI, GLNG, PAAS, TZOO, FSLR
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “120” 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.
