TheStockBandit.com

Good evening StockBandits!

The market was heading north this morning before news hit of another big earthquake in Japan (7.1), renewing radiation concerns which just recently subsided.  That sparked a wave of selling, but also resulted in the low of the day.  The first bounce led to a higher intraday low, and from there the market was able to stabilize and recover from its worst levels.  In the end, the indexes shed just a few points, continuing to cling near key levels.

We’ve seen this market essentially spend the week on hold, unable to gather any momentum to add to the recent rebound.  Given the size of the rally from last month’s lows, a pullback wouldn’t come as a big surprise to anyone.  However, what I find most interesting about today’s events is that the market had the perfect excuse to pull back and didn’t.  Instead, it simply marked time for another day, adding to the small base it’s been building this week.

Going forward, it wouldn’t take much to get each of the indexes back to 52-week highs.  The DJIA and RUT have already reached them, the S&P 500 is less than 1% away, and the NAZ is less than 2% from its highs.  If the most bullish thing the market can do is go up, then it’s done the 2nd-most bullish thing this week by quietly digesting the recent run without moving lower.

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: COV, CSX, ADI, CHK, GDP, FFIV, MGA, LEA, AKAM

Swing Trading Candidates:

AKAM looks to have stabilized since its correction with the establishment of a higher low in the near term.  I’m watching the descending trend line for a break just overhead with a push through $37.70 to indicate this one is continuing its recovery. As with all swing trades, my stop and target levels for this trade are found 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!

The indexes tagged new recovery highs this morning with a strong open, but the highs of the session were set shortly afterward and the market drifted lower from there.  Each of the averages posted modest gains on the day, but the moves were far from impressive.

We’re still grappling with key levels.  The DJIA is still within spitting distance of the prior high at 12391, the S&P 500 barely pushed past 1332 today (finally!) but remains 9 points shy of the February highs at 1344, the RUT has eclipsed its 2007 high of 856 intraday for the past two sessions but still has yet to close above it, and the NAZ continues to test 2802 intraday without success in closing above it (highs at 2840 remain unthreatened, as does the 2/22 gap which extends to 2833).

With that said, the market is holding up well after its recent run from the March lows.  The pace of the advance has certainly slowed in recent days, but all things considered, the market appears to be digesting that move rather well.

The biggest thing I’m going to be watching for in the coming days is some unity among the indexes.  The DJIA and RUT are hitting 52-week highs, but the NAZ and S&P 500 both have yet to break out.  Eventually we’ll either see the former weaken or the latter strengthen, at which point I think we’ll be able to trade with a greater directional bias.  Right now, it’s a rest phase (read: short-term indecision) and that means shortened timeframes for me on new plays.

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: COF, JEC, COV, ROVI, FRO

Swing Trading Candidates:

NONE TONIGHT

[table “20” 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!

Each of the indexes reached new recovery highs today, with the DJIA and RUT both tagging 52-week highs while the NAZ and S&P 500 pushed past key short-term levels at 2802 and 1332, respectively.  In the end, however, some late-day selling erased the day’s gains, leaving the market averages mixed and little-changed on the session.

It’s interesting that we’re still seeing plenty of hesitation on the part of buyers to really produce a ramp higher in this market when given the chance.  We’ve seen selloffs get bought aggressively, but new highs aren’t leading to runaway breakout-types of moves.  That indicates to me that the shorts are still the ones wielding the wallets on dips, as they’re eager to cover into weakness due to a lack of downside follow through for the past couple of years.  The bulls, on the other hand, seem to be sitting tight for the most part, passively buying.

That’s not to say that this run lacks steam, because anytime we’re near 52-week highs, the market has ample strength.  However, it does suggest that the best plays for multi-day moves will be buys on pullbacks.  Other setups (ie: breakouts) can still be taken, but for the most part seem most productive for quick pops such as day trades.

It’s healthy to see the market putting in a little rest up here, and that’s really helping to build some bases on the charts of individual stocks.  I’ll continue to list setups here as they come available for swing trades, but for Wednesday I’ll be keeping an abbreviated timeframe for new plays.

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: CXO, ADSK, UNP, KEG, FRO, HMY, APA, SLW, PDC, LNC

Swing Trading Candidates:

NONE TONIGHT

[table “19” 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 began the new week on a quiet note today as an upbeat start failed to generate additional interest.  Instead, the market stayed in a somewhat narrow range for the entire day, putting in some healthy rest while respecting Friday’s highs.

The NAZ and S&P 500 each continued to cling near key levels at 2802 and 1332, respectively, while the DJIA and RUT each pushed to new 52-week highs on a closing basis.  That gives us a bit of a mixed market at the moment, but I do expect soon we’ll see more unified price action – one way or another.

The big question tonight is whether today’s pause indicates some kind of a potential turnaround for stocks in the short term.  While that’s not at all out of the question, it’s more likely that today we simply saw some rest.  Today’s light volume indicates as such, and the indexes have made sizeable moves in the past couple of weeks, so it’s healthy to see them pause for now.  It may not rest for long, so it’ll be important for us to stay on our toes and be ready for whatever comes along.  I’m eyeing both long and short candidates for tomorrow’s session, and will take them as they trigger.

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: ADSK, LULU, UNP, TEX, ETR, RCL, CAM

Swing Trading Candidates:

NONE TONIGHT

[table “18” 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!

Encouraging economic data provided a positive start to Friday’s session, giving stocks a gap higher on the open.  Selling kicked in to erase some of the gains, but when the first bounce arrived, it led to a continuation push higher for the next two hours.  The NAZ went right to the 2802 level I’ve noted here multiple times of late, and then backed away for the rest of the session to finish well off its best levels.  In the end, the DJIA and RUT each pushed to new 52-week highs, while the NAZ and S&P 500 flirted with key levels at 2802 and 1332, respectively.

So at this point, the bounce continues despite short-term overbought conditions.  Some traders would point to indicators such as the McClellan oscillator, but I simply gauge overbought conditions on whether the pace of a rebound is sustainable.  Considering the indexes just tacked on more than 7% from the lows set just 13 sessions ago, it’s not a big argument to say that a rest at this point would be a healthy thing.  However, stocks still have upside momentum at this point, even after a weak finish on Friday.

That should keep things tricky in the days ahead as traders consider whether to chase this move, lock in some profits, or shift to the sidelines while waiting for more technical clarity.  While the indexes have all seen a rebound in the past couple of weeks, we are getting some mixed signals with the DJIA and RUT making new highs for the year, while the NAZ has yet to clear the prior bounce high and the S&P 500 sits right at short-term resistance.

It’s probably best at this point to stick with a disciplined approach and avoid chasing momentum names which badly need rest.  If the market is able to sustain its strength, rotation will occur, and stocks which have been basing may be poised for a push.  And should we see some selling pressure arrive, then maintaining high levels of cash will of course be a good thing.

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: COF, OPEN, UNP, SIVB, MXIM, ARG, WY, MTL, CAM, RIMM, SNDK, RCL, ANR, CCL

Swing Trading Candidates:

ANR recently made multi-week highs by leaving its trading range on strong volume, and has since consolidated for several days.  I’m watching for a push through the $61 level to signal the start of another advance, so I’ll be using that as a trigger for a buy. As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

CCL continues to act weak relative to the market with a steady decline in recent weeks.  The stock is now resting on support, so I’m watching for a breakdown at $37.85 to trigger a short sale. As with all swing trades, my stop and target levels for this trade are found 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