TheStockBandit.com

Good evening StockBandits!

Stocks erased significant morning losses today with a gradual recovery effort for the better part of the day.  After an opening gap to the downside and a gap fill attempt which failed, new lows were produced on the day.  However, late morning we saw another turn higher which was able to stick, and from there stocks worked their way back up to post modest losses by the closing bell.

Today’s turn off the lows comes on the heels of consecutive losses since last week’s trading range breakout failed.  With each of the indexes having made considerable progress to the downside in the past few sessions to reach the lower half of their respective trading ranges, buying pressure produced a modest lift from the session lows and we may be in line now for a bit of a relief bounce.  However, I’m not counting on that producing follow through since we’re still caught in the ranges.

The price action overall remains very sloppy and choppy, with some good intraday moves but not nearly smooth enough to be aggressively swing trading.  The overnight gaps are so frequent right now, plus the charts have had virtually no time at all to put in rest, and that’s keeping individual setups from really maturing at this point.  Needless to say, a little rest would go a long way.

For now, my focus remains on abbreviated timeframes for new trades, although I’m keeping an eye out for quality setups for potential trades beyond the daytrading timeframe.

I’ll cover my game plan for Tuesday 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: JVA, VHC, PANL, ANR

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “117” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Stocks made a quick retreat on Thursday and Friday ahead of the long weekend, reversing lower after clearing the mid-August high on Monday.  The rally which started 2 weeks ago covered considerable ground, and on Wednesday night last week here I noted that there was a hint of fatigue setting in.  That came to be the case as stocks turned quickly lower to give back roughly half the prior move.

In recent weeks, we’ve seen the major averages carve out both a higher low and a higher high, offering the bulls something to hang their hats on for the first time since early-July.  However, the bears are viewing this as a low-level digestion phase after the late-July to early-August selloff, and as I noted on the blog Friday, both sides have valid points.

The main objective we must continue to focus on here is that nothing is out of the question.  We might have seen the worst of it, or the correction might have only begun.  Either way, our job as traders is the same:  find quality risk/reward trades and avoid all else.

The difficulty right now is simply that this market refuses to sit still for more than a day or two right now.  That’s preventing the charts of individual stocks from being able to construct meaningful bases, so the charts remain very sloppy and about the only trades available right now tend to be descending or ascending trend line breaks.

Such is the case during a volatile phase of the market, and at some point that will change.  For the time being, it’s imperative to take trades with a short-term timeframe (due to the frequent reversals we’re seeing and the overnight gaps), while patiently waiting for more swing candidates to emerge.  Forcing trades in a sloppy environment can prove costly in terms of both capital & clarity, so be willing to protect both when you’re not seeing what you like in the charts.

I’ll cover my game plan for Tuesday 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: JVA, DLTR, PANL, KGC, CTSH

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “116” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Wednesday’s turn lower from the morning highs hinted at fatigue, and today we saw confirmation of it as the market saw some profit-taking.  Today’s pullback took the indexes back into their respective August trading ranges, although that was somewhat to be expected after breaking out incrementally during the ramp higher from last week’s lows.

Tomorrow we have the highly-anticipated jobs report (Nonfarm Payrolls in the premarket), which could quite easily prompt a sizeable gap by the opening bell in either direction.  Beyond that, we have a 3-day holiday weekend with the markets being closed on Monday in observance of Labor Day.  With that said, it’ll be of great importance to stay selective on Friday, particularly in the afternoon, as a dull morning could send traders heading for the exits early to kick off the long weekend.

I continue to see very little on the daily charts in terms of setups which are high-quality enough to warrant new swing (multi-day) entries. However, we’re still seeing a few setups emerge for single-day plays, so that will remain my focus for Friday.

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: AUY, BTU, ADSK, PAY

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “114” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Fatigue may have finally hit the market today after a huge run from last week’s lows and an upside gap this morning.  The opening hour did show some follow through to take the market to its best levels, but ultimately profit-taking kicked in to erase the morning gains.  By day’s end, modest upside progress had been made but we finished well off the session highs.

There’s no doubt the buyers have had momentum since last Tuesday, and they’ve produced quite an impressive bounce as a result.  We’ve rallied past the mid-August bounce highs, and have held above those levels on a closing basis for three days now.  With that said, however, we’ve come a long way and a rest may finally be in order.

With the jobs report due out Friday morning and with a 3-day holiday weekend ahead of us, traders have some motivation here to book some gains and lighten up.  That could produce a pullback or simply some basing action (much like today’s), and either would be technically healthy to see at this point.  The bulls do have momentum on their side for now though, so they just might press their luck.

I continue to see very little on the daily charts in terms of setups which are high-quality enough to warrant new swing (multi-day) entries.  However, we’re still seeing setups emerge for single-day plays, so that will remain my focus ahead of the long weekend.

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: RENN, AUY, ADSK, MGA, FSLR

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “113” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

It was quiet on the trading front this morning as the market initially sold off after yesterday’s incremental breakout, pulling the indexes back into their respective trading ranges.  However, things stabilized soon after and from there an intraday uptrend emerged.  That continued into the afternoon, leaving the market at new recovery highs once again, and just a bit further beyond former resistance zones from mid-August which were cleared yesterday despite an end-of-day hiccup.

While today’s push was a positive one for the bulls (follow through), it still leaves this market short-term stretched to the upside and therefore difficult to buy for anything but day trades.  Add to the mix the fact that virtually no stocks have been able to base quietly of late, and there just isn’t much to look at in terms of potential swing trades in either direction.  The buyers are holding their own for now, but chasing stocks after significant runs over the past few sessions is a recipe for buying late.

Fortunately, there are some excellent opportunities for day trades.  Today gave us nice moves in all 3 of last night’s candidates, offering potential for profits without the overnight gap risk which has been so prevalent for the past month.  I particularly liked the intraday charts of those day trades, so I’ll point out some lessons from them in tonight’s video.

Beyond that, there are a handful of trades I’m eyeing for tomorrow’s session, but as we edge deeper into the week, the long holiday weekend will no doubt pull traders away from their screens.  Volume has been light lately, and that’s likely to continue until at least next week as late-summer vacations are taken ahead of the fall.

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: QIHU, GOLD, RENN, CY

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “112” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Traders started the day in buy mode this morning with an opening gap to the upside, and nothing changed as the day progressed, leaving the indexes with substantial gains across the board.  Whether it was the lack of impact on the exchanges from Hurricane Irene or simply that the weekend allowed traders to assess current conditions, the mood was upbeat and the bounce from August support continued.

The most significant technical event of the day was the fact that the low-level trading range saw an upside breakout today with the creation of new recovery highs off the August lows.  While that opens the door to more upside, it’s very important to keep in mind that we’ve become very stretched to the upside over just the past week.

As a matter of fact, the S&P 500 is up over 6.6% just from Friday’s intraday low.  So with that in mind, despite the fact we’ve technically cleared short-term resistance with an attempt here at leaving the low-level range to the upside, I’m cautious when it comes to taking new longs for anything but quick trades.

With Labor Day coming next week (actually just a few days from now with a 3-day weekend), the below-average volume we’ve been seeing could quite easily continue.

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: QIHU, GLNG, FSL

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “111” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

After faltering at the end of the previous week, the major averages staged a nice comeback last week to rally from short-term support zones.  It wouldn’t have taken much to break to new August lows, but buyers emerged and produced gains of 4-6% across the board.

The wide trading range I anticipated 3 weeks ago remains intact, and we’re seeing prices flying back and forth between the boundaries.  Frequent changes of direction have become the norm, which is always a distinct possibility during periods of digestion like this market currently is.

Emotions are running high, producing breathtaking rallies and gut-wrenching selloffs, but overall no significant progress has been made in terms of an exit from the range.  We’re off the lows for now, but remain shy of the mid-August highs, which means a directional bias right now has no grounds from a technical basis.

We are seeing ample movement on any given day, which is providing many opportunities for day trading.  For a multi-day timeframe, however, it’s much more of a guessing game at this point than the strategy-based technical approach I prefer.  Swing trades are requiring very wide stops and small positions, along with a willingness to endure large overnight gaps.  That makes it very tough to manage risk effectively, and also forces more attention on such trades than usual since a game plan can require adjustments by the day (sometimes twice!).

I’m sticking with day trade candidates heading into Monday, which is what the charts are offering right now.  I’m looking forward to having more swings available, but with the market running back and forth as erratically as a caged wild animal, the best setups remain absent.

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: OPEN, SNDK, GOLD, MAN, WBMD

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “110” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last night I noted the fact that while the market was rebounding from support, a trading range was still in effect and therefore reversals were still likely to take place.  That remains the case, and today we saw the market respond to negative AAPL news (with Steve Jobs’ departure) as well as upbeat BAC news with Buffett taking a sizeable stake.  Ultimately, the buyers weren’t motivated to take action, and early strength disappeared in favor of more selling.  By the closing bell, the indexes had given back the entirety of Wednesday’s gains and then some.

The major averages therefore remain caught in their respective trading ranges tonight.  Although the environment remains volatile, the wide ranges allow for plenty of movement between the boundaries.  This appears to be a phase of digestion from the selloff which started in late-July and carried into early-August, and until we get free of the range, we can expect continued indecision.  The wide-ranging bars we’re seeing on most days in recent weeks also means sloppy charts for individual stocks, leaving us with little to focus on in terms of trades for anything but a few hours at a time.

Tomorrow, the Fed takes center stage with Bernanke’s 10am ET speech.  While traders may have been jockeying for position this week ahead of the main event, the fact is that nobody knows what will be said tomorrow.  That opens the door for surprise or disappointment, which could make tomorrow another lively trading session.  It would take a significant move for the market to exit the range tomorrow, so while that’s possible, it’s more probable that we’ll have to wait until at least next week for a push beyond one of the boundaries (early-August lows or mid-August highs).

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: SINA, P, GOLD, PLCM, RVBD, APKT

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “108” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following a morning pop and a mid-day drop, the market found its footing this afternoon to get back on track and add to yesterday’s gains.  This took each of the indexes further into the unfilled gaps from last Thursday, while simultaneously putting more distance between current levels and the support zones we just left behind.

Tuesday’s volume was lacking on the upside, but it was a solid advance and it found follow through today – both of which are of greater importance than volume.  We’re still caught in a low-level but very wide trading range over the past few weeks, with apparent tests on the horizon.  On the upside, I’m watching the gaps from last Thursday, followed by last week’s highs.  There’s ample room on the downside at the moment before support is threatened, but the August lows are the lines in the sand.

So while this second bounce is in effect for now, the fact remains that capital preservation remains a top priority in this tape.  We’re caught in a short-term range, which means frequent reversals and continued volatility are likely until we break free from the range, whether on the upside or downside.  That, combined with the charts of individual stocks leaves me eyeing day trades for tomorrow’s session, as that’s where the activity is right now (as well as the most effective timeframe for managing risk).

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: SCCO, NE, EVEP, TZOO

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “107” 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.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The failure of stocks to hold onto solid gains yesterday morning gave way to a gap-fill and ultimately a lackluster session as strength faded and the indexes faced new potential lows.  Today, however, a gap up open saw only a short-lived attempt to fill before the buyers stepped in to stay for the remainder of the session.

By day’s end, the major averages had tacked on 3-5%, showing that the bulls are taking a stand – at least for now.  The point gains were impressive to say the least, which puts a little distance between current prices and the short-term support zones which are getting defended.  Today’s rally took the market to multi-day highs, and by this afternoon the gaps from last Thursday morning were getting partially filled (although only slightly).

I’ve mentioned the possibility for the past couple of weeks that we could see a wide trading range develop after the late-July and early-August selloff, but last week’s bounce failure left that possibility in jeopardy.  Today’s rally from support brings it back to light, so I’ll operate on that thesis until it’s proven wrong.

In terms of individual charts worth highlighting, there are a few, but in such a volatile environment with wide swings and frequent changes of direction, the kinds of bases I’d swing trade from aren’t present in the charts.  Additionally, with overnight gaps still being seen regularly, it’s very tough to manage multi-day risk effectively since an overnight gap can change both entries and exits derived from the chart the night before.  So for tomorrow, I’m eyeing several day trades.  With all this movement, that’s offering both opportunites as well as an effective way to manage risk.

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: VMED, SINA, MCP, TZOO, MTL

 

Swing Trading Candidates:

NONE TONIGHT – 100% cash.

[table “106” 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.

Trade Like A Bandit!

Jeff