TheStockBandit.com

Good evening StockBandits!

Last week we saw some very interesting price action in the market, to say the least.  It began with Monday’s downgrade of the US debt by Standard & Poor’s from Stable to Negative, sending stocks to new pullback lows off the early-April peak.  However, by the end of the week we saw the NAZ and DJIA making new April highs.  Upside gaps took place on the final 3 sessions of the week, with each of them followed by additional buying by the end of the session.

At this point, we now have technical proof of the emergence of the bulls (again), as well as some confirmation of higher lows on the daily charts of the indexes.  The S&P 500 is just a couple points shy of clearing the prior bounce highs (from the March lows), and the RUT has a little ground to make up, but apparently this market is finding some encouragement from the earnings announcements we’ve seen so far.  Many more companies have yet to report, so we could see the complexion change a bit in the days ahead.  Some rest and digestion of this move wouldn’t at all be a negative thing, although the buyers are in gear and don’t seem eager to relent.

Volume sagged a bit on Thursday, but with a 3-day weekend and a sizeable move which preceded it, it was little surprise to see traders stepping away early or simply doing less ahead of Easter weekend.  Things are sure to stay interesting in the coming days, as we have a 2-day Fed meeting on Tuesday and Wednesday with the announcement on interest rates and the accompanying policy statement at 2:15pm ET Wednesday.

Needless to say, it’s a time to stay on our toes and keep working the charts, just as we always do.  That prevented us from embracing the recent pullback as a downside reversal, and served as a good reminder to keep an open mind in the market – especially when it’s such a news-driven environment.

For Monday: there will be no Broadcast as I have a personal engagement which will prevent me from producing the newsletter.  Things will return to normal on Tuesday.

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: ANF, DKS, ICO, CCL, GOOG, EXK, MAKO, PRGO, PAY

Swing Trading Candidates:

PAY just pulled back for a few weeks but has maintained its overall uptrend.  This looks like a potential buying opportunity, particularly if the stock is able to resume its trend.  I’m watching for a push north of the descending trend line at $53.80 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

[table “30” 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 gapped higher this morning on the heels of encouraging earnings reports last night, as well as strength in overseas markets.  The morning gap was held and built upon due to the lack of profit-taking.  The news of downgraded US debt which struck fear in the hearts of market participants on Monday morning was mirrored today with enthusiasm, serving as a reminder of just how short-sighted the market tends to be.  That’s exactly why I’m a trader and not a long-term prognosticator.

Today’s strength took us right back to key levels in the big 3, as the NAZ again tagged 2802, the S&P 500 tagged 1332, and the DJIA finished just above the recent highs at 12450.  That makes the next few sessions potentially pivotal, as the bulls have another big opportunity here to press their edge.

Needless to say, Monday’s losses have now been fully erased, and it sure didn’t take long.  This market has had plenty of opportunity to sell off deeper in recent weeks after the pace of the rally from late-March and early-April slowed, and yet it has held up quite well.  It appears as though we’ve just established, at least for the time being, a higher low on the daily charts.  Stocks are climbing the proverbial wall of worry here, so let’s keep an open mind here as this unfolds.

Tonight in the after-hours session, the futures are pointing higher once again after encouraging earnings reports, which could produce another upside gap tomorrow morning.  With Thursday being the last trading session of the week (since the markets are closed in observance of Good Friday here in the U.S.), and with a quick rebound from Monday’s lows, we could see the early strength used for some profit-taking.  It’s still a trader’s market until we see all the indexes reach new 52-week highs, so keep that in mind as we head into tomorrow.

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: ICE, PAY, CNX, GPOR

Swing Trading Candidates:

NONE TONIGHT

[table “29” 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!

Today we saw the indexes stabilize further after Monday morning’s selling, adding to the possibility that a higher low may be in the works.  We saw attempts made to fill the Monday morning gaps, although as of yet they’ve not completely been filled (NAZ 2764, S&P 1319, RUT 834, DJIA 12341).

Some are concerned that the nature of this bounce isn’t intense enough, and therefore it could fizzle out quickly.  I can’t argue with that, although I’m also not interested in shorting into it at this point.  For the time being, a higher low is still possible, so it may simply be that this rally is initially slow to gather some steam.  That still leaves room for upside acceleration if it gets embraced in the coming days, so it’s important not to count out the bulls just because they’ve been idle for a few weeks.

I’m still working the charts continually to keep track of bases and patterns which are building and maturing.  The shake-up from Monday eliminated some of them, but there are still quite a few intact which could develop into solid trades if they begin to gain traction.  The thick of earnings season is approaching quickly on the horizon, so I’m keeping a close eye on those events as well in order to avoid any surprises.  Lately I’ve taken very few swing trades, but as patterns mature and confirm I’ll look to add more overnight exposure.

Tonight I’m doing a webinar in conjunction with Worden, and I hope you can join us! Here’s the link where you’ll see details & be able to register for 30min of stock & pattern discussion, followed by 15min of Q&A.

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: MFN, HANS, CPO, CREE, TER, RAX, FLIR

Swing Trading Candidates:

RAX has spent the past couple of weeks building a symmetrical triangle as it digests the prior advance.  This one looks about ready to resolve the triangle, so I’m watching for a continuation move to begin if the upper trend line gets broken.  I’ll be a buyer if this one clears $43 on its way back up. 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

FLIR has pulled back to test prior resistance, which now is serving as support.  I’m watching the descending trend line just overhead for a push back up through it, as that would free up this stock to rebound from this support zone.  I’ll be a buyer if the $33.30 level 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

[table “28” 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!

This morning, the futures were lower to set a negative tone in the early going, but then a half hour before the opening bell news broke of Standard & Poor’s cutting their rating on US debt from Stable to Negative.  Although it still maintains its AAA rating, the news was enough to produce a pretty good downside flush.  Stocks gapped significantly lower at the opening bell, and trended lower from there.  Later in the morning, the market was able to stabilize and then grind its way partially back up in the afternoon.

Today’s selling took the indexes to a new pullback low, doing little to inspire confidence.  However, the day was not without its positives.  First, we did see an intraday recovery attempt, which showed that there was some buying taking place on the dip.  Second, we held last week’s lows on the close.  Finally, today’s move may have shaken out some bulls who may wish to re-enter upon further strength.  That means this could still result in a higher low, but it’ll require further stabilization and eventually a turn back up to challenge the early-April highs.

Many stocks had been building bases and patterns which were fouled up by today’s bars.  I have no problem eliminating those from my watch lists, but I was encouraged by the stocks which were able to hold their ground.  There are still quite a few setups which could offer some potential in the days ahead, so we’ll just need to continue to work the charts in search of the best risk/reward profiles.

As a reminder, I’ll be doing a webinar on Tuesday night at 8pm ET, and I hope you can join us! Here’s the link where you’ll see details & be able to register for 30min of stock & pattern discussion, followed by 15min of Q&A.  As a result, my Tuesday night Broadcast will be abbreviated.

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: SFLY, RAX, SOHU, MAKO, CTRP, UA, NTES, VMW, JDSU

Swing Trading Candidates:

NONE TONIGHT

[table “27” 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 market ended last week on a slightly upbeat note, but all in all it was a quiet week.  The pullback from the early-April highs continued on Monday and Tuesday, but from there the market was able to stabilize for the remainder of the week.  Net changes from the prior Friday were all negative, but less than 1% in each of the indexes.

Currently, the bulls have a great opportunity to step in and help to confirm a higher low on the daily charts.  We’ve seen a multi-week rest, not only with some lateral price from late-March into the first week of April, but also with a mild pullback which has since followed.  Should the buyers step in here, we aren’t far from the recent highs (or 52-week highs), and stocks could quickly gather momentum if strength returns.

The rest phase has made for very few plays outside of a day trading timeframe, but at the same time it’s been a very productive stretch for many charts which are building some higher-quality bases.  The larger bases are best for multi-day plays, and with many multi-week patterns now starting to mature, we could see quite a few swing trades coming to light in the days ahead.  I’ll of course monitor the earnings calendars closely (as should you) in order to avoid any surprises, but if this market can start to show some better follow through, many stocks have potential to make meaningful moves after the recent period of indecision.

Finally, I’ll be doing a webinar this Tuesday night at 8pm ET, and I hope you can join us!  Here’s the link where you’ll see details & be able to register for 30min of stock & pattern discussion, followed by 15min of Q&A.

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: RAX, MELI, FOSL, JDSU, CLF, BWA

Swing Trading Candidates:

BWA recently sold off 7 of 8 sessions right to an area of support.  It appears to be stabilizing here, so I like the risk/reward here for a turn back up ahead of earnings (Thurs, April 28) if the stock can clear the steep trend line at $72.50. 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 “26” 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