TheStockBandit.com

Good evening StockBandits!

Last night I noted here that we had pulled back for three sessions into key levels for the NAZ and S&P, and that those zones may produce a bounce.  Today we got that bounce as buyers stepped in to defend those levels into some early weakness, with the lows of the day being carved out in the opening minutes of the session.  We saw a decent intraday uptrend emerge, and although some of the gains were given back with some late-day selling, the market finished positive.

We’ve been in an environment where bounces have been getting sold for the past few weeks, which means that once the market is able to make a fair turn back up, it may be slow to take root.  Traders are easily conditioned to respond to recent behavior, so it’s not too surprising that the first day of this bounce is being met with some skepticism (hence the late-day selling).  Nonetheless, we now have a level to trade from on the long side, so let’s see how things unfold.

Despite the fact that this bounce is starting off in a sluggish manner, I have less interest in the short side after seeing key short-term levels hold up.  I’m willing to change my opinion as warranted by the charts, but for now more bullish setups are emerging and that’s worth paying attention to – so long as appropriate stops are well-defined.

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: X, SINA, ATML, LULU, NR, SOHU, FMC

Swing Trading Candidates:

FMC pulled back to key support in recent days and last night I actually listed it for a breakdown candidate.  Today the stock undercut support, but quickly rallied back to reclaim it.  That head-fake move now leaves the stock poised for a push higher, but it will need to clear the trend line at $83.50 first.  I’ll be using that level as a trigger for a buy, and will be looking for a push back up toward the recent highs if it is cleared. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

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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!

A minor gap to the upside was greeted with selling this morning as the pullback continued.  Once the indexes filled the gap, the morning highs were never again approached, and in the end, the market gave up a bit more ground.

We are still dealing with some key levels here, namely NAZ 2744 (tagged on the number today) and 1312 on the S&P 500, which could serve as meaningful pivots going forward.  We’ve pulled back for three days into those levels, and they may produce a bounce. However, if we do see them get broken, particularly on a closing basis, it will be our signal that stocks are headed for lower levels in search of buyers.

The prevailing mood seems to have dampened over the past few weeks.  We’ve seen this market go from dips getting bought, to an environment where bounces are getting sold.  That’s a subtle change of character, which requires that we stay attentive at this point and await further technical clues.  I’m doing my best to keep an open mind here, because for the time being it’s still pretty much a range-bound market (with prices at the lower end right here).

Quite a few more charts emerged tonight with quality setups, including a pair of swing candidates I’ll cover in the video.  What you will notice, though, is that I’m eyeing plays in both directions, as this market environment necessitates it right now.  The good news is that it means there’s potential opportunity on both sides of this market, and that means profits can be had even with an overall hedged stance.

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: BHI, NOC, FMC, DKS, JOYG, ARBA, XEC

Swing Trading Candidates:

ARBA has pulled back from its high two weeks ago, but has done so in a quiet manner and is currently holding support.  This stock overall looks range-bound, but if it can cross the descending trend line to the top side with a push past $32, it has room to move back toward the upper end of the range.  I’ll be using that level as a trigger for a buy. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

XEC remains caught in a downtrend after failing at resistance in early April. Since then, the stock has seen multiple waves of selling, and currently rests just above a key level.  A break through support at $89.00 could easily spark another wave of selling, so I’ll be going short if this stock undercuts that level. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “51” 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 rebound from the lows of last Tuesday came under some pressure Friday, but today they officially failed.  New pullback lows from the May peaks were made in today’s session, highlighted by an opening gap to the downside which never saw a serious attempt at a fill.  Instead, the indexes lingered deep in the red all day, never getting far from where they began the session.

Of course, today’s declines and subsequent new pullback lows confirms more lower highs, giving us now a pair of lower highs and a pair of lower lows.  Whether the pressure stays on remains to be seen, but one thing’s clear right now: this market is still correcting.

I care not if this market turns a meaningful corner (in either direction), or if it becomes range-bound for a period of time.  What I do care about is the quality of the trading opportunities at any given moment.  Tonight, the only setups I like are those which can only be trusted for brief moves, so I’ll be a day trader on Tuesday.  When it comes to high-quality patterns available for multi-day plays, they’re just not there tonight.  That could all change in a day or two, and certainly may, but I don’t ever force trades in an attempt to get some overnight exposure.

Given the lack of setups tonight, as well as the fact this market has made a decent downside move over the past couple of sessions, it’s a very tough spot to do much.  Instead, my aim is on capital preservation while this (thus far) minor correction continues to play out.  That will leave me best-positioned to take advantage of the next opportunities which come along by having cash on hand, as well as preserve my objectivity by not chasing short sales here or by attempting to catch knives and go long in hopes of a quick bounce.

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: TUP, BVN, FTO, PANL, CAM, BGC

Swing Trading Candidates:

NONE TONIGHT

[table “50” 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 week the indexes broke key levels with weakness on Monday and early Tuesday, but from there we saw an oversold bounce kick in.  Stocks reversed higher into Thursday, but volume backed off as the rebound progressed.  Then the week ended with some Friday selling, taking the indexes right back to key levels as we headed into the weekend.

In the short term, the daily charts of the indexes show confirmed lower highs and lows since the beginning of the month, and the bounce we may have just completed could add to the list.  That may, in turn, prompt more profit-taking on the part of the bulls if a test or breach of the May lows comes along.

Zooming out on the charts, this pullback could prove to simply be a dip within the longer-term trend.  Only time will tell for sure, but as short-term traders, right now it certainly seems prudent to protect capital and wait for better momentum in the overall market before committing directionally to individual plays for anything longer than a few hours.  Swing trading is best done with the proverbial wind at your back, which is a trending market.  We’ve seen the indexes work their way slightly lower in recent weeks, but are clinging to support zones at the moment and still remain range-bound.

While we wait for better signals and momentum to reappear, my plan is to stick primarily with shortened timeframes for new trades.  I also encountered quite a few sloppy charts of individual stocks, making it harder right now to locate setups for plays which have quality risk/reward profiles associated with them.  We have Memorial Day next week, so it’s possible we see this range persist a little longer, and that means patience is still a virtue.

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: SSW, ALTR, IBB, ADS, VLO, EQT, KLIC, BVN, SINA, LVS

Swing Trading Candidates:

NONE TONIGHT

[table “49” 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 indexes continued their bounce today from the lows set on Tuesday, albeit in a lackluster fashion.  Not only did the net changes fail to impress, but we saw volume diminish across the board.  Toss into the mix the fact that we still have plenty of overhead at levels above from recent weeks, and there are plenty of reasons not to trust this bounce.

Nothing is out of the question, of course, as this is the stock market and anything is possible at any time.  However, gauging from the price action, the volume, and the overall conviction this market seems to have, there’s no evidence mounting as of yet to suggest we’re on the verge of gaining momentum in either direction.  In other words, we could see this range-bound price action persist a bit longer.

Tomorrow is of course options expiration day, which is frequently influenced by the role of derivatives, and thus often difficult to read much into.  Then next week is followed by a 3-day weekend and the Memorial Day holiday, which is often a signal that summer is beginning.  So, with range-bound price action, options expiration, and then a major holiday all in a few days, it’s a good time to lower expectations in the coming days.

I do expect the summer to have plenty of activity and ongoing opportunities, so please don’t misinterpret what I’m saying.  What I’m doing my best to clarify is that over the next few days, barring a big change in the price action, we may not see much momentum surfacing.  If the market happens to surprise us and produce it, great.  Otherwise, we’re preparing to be selective and patient until the next few days have passed.

Be sure to check out today’s post covering Setups Under $20, as I know quite a few enjoy the additional ideas.

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: NUAN, HOC, SOHU, GG, CAM

Swing Trading Candidates:

NONE TONIGHT

[table “48” 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