TheStockBandit.com

Good evening StockBandits!

An upbeat start this morning saw a brief attempt at a gap fill, but the buyers prevailed and the market held its ground in positive territory.  From the morning lows, the market was able to trend quietly higher throughout the session, going out just a short distance from its highs by the closing bell.

Yesterday’s upside reversal therefore found follow through with today’s action, taking the indexes each closer to their respective descending trend lines.  The one standout in that regard tonight is the DJIA, which cleared its descending trend line today.  The trend lines aren’t the ultimate level to watch, however, but merely the next ones to approach.  Beyond them still stand the prior bounce highs, which were formed on the rebound from the initial pullback from the February peaks.

The market is showing some momentum right now, despite the V-shaped recovery from the recent lows.  Technical traders like myself see this as a high-risk area to be initiating new buys, but as of yet we’ve not seen the bounce run out of gas.  My plan is to respect the price action and take a few short-term plays as they come along, particularly since there are several technical reasons to avoid initiating new buys for anything but quick flips.

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: TSO, EMN, URI, CVI

Swing Trading Candidates:

NONE TONIGHT

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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 pullback this morning gave the appearance of a 2nd day of declines with the downside seemingly gaining some early traction.  It looked like the market was starting to roll over after its V-shaped sharp bounce from last week’s lows and yesterday’s stall-out, and technically it certainly could have accelerated to the downside.  However, the dip was bought, and the indexes moved positive by mid-day, where they remained for the rest of the session.

Today’s upside reversal from a weak morning no doubt sucked in some bears who are tonight second-guessing their positions.  That would suggest the bulls are sitting pretty tonight, but they can’t breathe easily yet either with descending trendlines still at levels above current levels.  That means this bounce could still result in a lower short-term high, leaving us with a mixed bag at the moment from a technical standpoint.  Such is the nature of a correcting market, and it will likely keep us on our toes for a little while longer.

More patterns are building after just a couple of quieter days in the market than what we had been seeing lately, so I’m seeing more potential swing candidates in the charts for the days ahead.  Time will tell for sure, but at least for now the news flow is allowing the price action to follow a more orderly fashion.

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: LULU, CVI, CTRP, RCL, FOSL, ULTA, BHI, SPRD, PXP

Swing Trading Candidates:

PXP has bounced from its low of two weeks ago to build this bearish rising wedge.  This pattern is bearish in that it often gets resolved to the downside, and thus creates a lower short-term high if confirmed.  I’ll be going short upon a break of the lower rising trend line at $35.40. 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!

Another sizeable gap hit the market today as pre-market buy orders built up on the heels of a quiet weekend in Japan and what looks to be the start of some changes in Libya.  The opening minutes provided just about the only excitement, however, as the indexes topped early in the session and then spent the remainder of the day in choppy sideways trading ranges.

Volume failed to confirm today’s upside as well, and was well below average in each case.  Given the combination of little intraday follow through and light volume on the third straight up day (and following a pair of weak finishes on Thursday and Friday), this isn’t the kind of setup that inspires big confidence for the bulls.  Yes, they’ve seen plenty of V-shaped recoveries over the past couple of years, but those were one-off pullbacks which were quickly erased.  At this point, we’ve got 1 confirmed lower high and this bounce could still quite easily lead to a 2nd.  Stated otherwise, this appears to be a bounce within the intermediate-term correction.

I’m still not trusting of this bounce, and intend to remain in cash on Tuesday, instead sticking with day trades.  The daily charts of many stocks are still obviously quite messy with the wide-ranging volatility of just the past few sessions, plus we’re still getting big gaps.  That makes holding overnight positions (swing trades) very difficult at best since risk can’t be managed in the same manner as it can be when the market is trending better.  That’s perfectly alright though, as there are times when capital preservation is the best plan, and right now is one such time.

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: URI, CVI, WSH, BHI, INFY, JAZZ, ULTA, OC, PRU, FCX

Swing Trading Candidates:

NONE TONIGHT

[table “8” 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 shed 2% last week, despite a pair of up days on Thursday and Friday, as Japan nuclear concerns and continued unrest in the Middle East weighed on the confidence of Wall Street.  Even the bounces we saw on Thursday and Friday were characterized by intraday selling (closes which were below the opening prices), reminding us that in a correction phase like this, bounces tend to get sold.

That’s a big shift from the buy-all-dips mentality this market had shown for so many weeks and months.  And while this correction is healthy to see (since it can actually perpetuate the bull market if it stays relatively shallow), it has arrived with considerably higher volatility than we’ve seen in some time.  We’re getting more frequent large overnight gaps, frequent reversals, and wider daily ranges.

Such is the nature of a short-term change of character, but while the uncertainty runs high the sidelines aren’t at all a bad place to be.  Once things quiet down a bit on the technical front, some excellent opportunities will emerge.  In the meantime, it’s important to exhibit patience and a willingness to stick with only the best setups which offer shortened timeframes, tighter stops, or ideally both for new trades.

Since Friday’s closing bell, air strikes have begun in Libya to enforce the no-fly zone, which could shift the attention back to the Middle East this week – particularly if things remain quiet at the Fukushima Plant in Japan in the days ahead.

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: SVVS, JAZZ, MON, IPI, AFL

Swing Trading Candidates:

NONE TONIGHT

[table “7” 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 gapped higher this morning following a pair of big declines and a quiet news front, inviting buyers off the sidelines ahead of the opening bell in hopes of participating in an oversold bounce.  The early strength proved to be the extent of the upside for most of the indexes, as the early strength failed to find any meaningful follow through.

Today’s inside bars on the daily charts offer little to be excited about tonight.  Volume waned compared to the levels seen in the prior two days, suggesting this was more of a dead-cat bounce and knee-jerk relief rally than a positive change of character.  On top of that, intraday we actually saw some selling take place in the NAZ and RUT between the opening and closing bells, reminding us that in the midst of a market correction, bounces get sold.

It’s still a news-driven market right now, and the frequent large overnight gaps we’re getting leave me content to stay on the sidelines in terms of ending each day in cash.  At some point the dust will settle and we’ll likely have our hands full with great technical setups, but right now I’m only willing to trust stocks for a few hours at most, which makes me a day trader heading into Friday.  The sidelines have prevented pain in recent weeks while others suffer from sudden losses, and that’s a huge advantage we have as short-term traders.

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: MDR, MTZ, CAT, WHR, DECK

Swing Trading Candidates:

NONE TONIGHT

[table “6” 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!

A weak open this morning found some tentative buyers as the early gap was attempting to fill.  However, a little over an hour into the session, the selling intensified and stocks trended lower into mid-afternoon.  We did see a late-day bounce from the lows of the session, but the indexes suffered more technical damage with new pullback lows being set.

The situation in Japan is clearly the primary focus right now, but there’s a mixture of opinions surrounding it.  Some are proclaiming that things are “out of control” while others suggest this is one big overreaction by the market.  There’s no question that Japan has suffered immensely already, and there are economic implications tied to a major country shutting down plants while they tend to more basic needs.  However, the issue this market is facing is one of uncertainty due to there being no consensus for what to expect going forward.

Traders tend to sell first and ask questions later, and that’s preventing this market from being able to stabilize.  We’ve undercut support zones and trend lines in recent days, and that also opens the door for more downside as the shift takes place from buy-all-dips (just a few weeks ago) to sell-all-bounces.  Yesterday, anyone who tried to short into the weakness was caught leaning the wrong way as the market spent the rest of the day recovering.  Today, anyone who attempted to buy the dip was punished as the bounce failed.

The market will continue to humble traders left and right, not only because it has a tendency to do so, but because the tape remains extremely headline-sensitive.  A rebound will take place at some point, but this is not the place to step out in blind faith that the worst is over.  We’ve seen corrections of 6-7% off the highs, and it’s certainly possible that the pullback hasn’t been completed.  The hard part in trading often is to wait patiently, but that’s the best course of action with uncertainty running so high right now.

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: AN, GMCR, IL, WHR

Swing Trading Candidates:

NONE TONIGHT

[table “5” 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