TheStockBandit.com

Good evening StockBandits!

A multi-day pullback left the indexes sending mixed signals last night as the NAZ broke a rising trend line while the S&P 500 held short-term support at 1130.  I mentioned my hesitation in jumping to conclusions, at least until we saw the indexes moving more in tandem, and today that’s exactly what happened.

Right out of the gate, the buyers embraced stocks with an opening gap which never attempted to fill.  Instead, cash was put to work and stocks moved steadily higher into mid-day, where they leveled off for the remainder of the session.  The indexes went out only a short distance from their intraday highs, sending a unified signal yet again that the trend remains up.

The difficulty at this point for a disciplined trader is what to do next.  Aside from having seen the market make a huge run over the past few weeks with hardly a rest, we’re now coming into some significant overhead resistance zones which could quite easily diminish the intensity of this rally.  At the same time, we’ve yet to see any technical change of trend, so there’s no reason to be overly bearish.

The best way to handle this dilemma right now is to exercise patience, take only the best setups, and keep stops in place at all times.  Walking the high wire here is the only way to attempt to participate, yet as traders we aren’t forced to do that.  Throwing caution to the wind and chasing an extended market is a recipe for pain once the momentum train slows down – and it will.  So in the meantime, I’m planning to locate high-quality setups for short-term trades, and will keep a stop in place at all times should things happen to reverse.

After today’s breakout, there’s no shortage of names which are in uptrends.  And while many simply lack the patterns I prefer to trade from, there are some which are on my radar for Wednesday.

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:  MMR, BORN, SOL, SGY, RHT, MTL, ROVI, ATPG

Swing Trading Candidates:

ATPG has been grinding higher in recent weeks, and right here looks to be stabilizing after a minor pullback within the uptrend.  A move up through the trend line at $13.75 will trigger a buy for me as this one gets back on the move.  As with all swing trades, my stop and target levels for this one will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

MMR, IVN, BORN, RRC, GDP, SGY, RAX, RHT, HMIN, TIE, MEE, ARBA, MYGN, CIB, PHH, ROVI, SOL, CMI, MTL, ATPG, NANO, GPS, HAR, TRE, LLNW, SNIC, OCLR

Bearish Watch:

EJ, ADBE, BIG, BKE, SWN

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!

Thursday’s failure to hold new highs when reached last week left traders with something to ponder over the weekend, and it wasn’t long today before some selling kicked in.  Once the indexes moved into the red, they stayed there for the remainder of the session.  Although some support was found after the morning selling, the lift from the lows into the afternoon was very minor.  That raises the question of the whereabouts of the dip-buyers who have been so prevalent in this market lately.

One day of downside doesn’t seal the fate of the market, although there are certainly some reasons here for caution.  Aside from last week’s failure to hold short-term breakouts to new highs, we have the NAZ breaking a 3-week uptrend line today and the RUT falling back beneath 670.  The S&P 500 did hold the 1130 zone where it recently broke out, but all in all, we saw some selling today that could test the bulls in the near term.

Should this pullback happen to get deeper in the coming days, that wouldn’t be unhealthy to see.  Pullbacks and rest phases actually help to perpetuate uptrends, as they help prevent advances from getting too stretched.  The steeper a move tends to be, the more easily it can simply reverse.  So, ideal uptrends are in fact accompanied by some dips along the way, and even the bulls realize that in the current environment.

For now, a pullback is getting underway but we lack clear signals that the selling is intensifying.  Heading into Tuesday, I’m planning to stick with shortened timeframes for new trades while waiting further technical clues.

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: VXX, CAGC, FTNT, MON, APA, ENER

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

EQR, VXX, NTES, RES, LVS, FTNT, MIPS, ARBA, MAR, MYGN, EBIX, CAGC, HOG

Bearish Watch:

CRK, MON, CSX, ADBE, BIG, NE, SWN, NYX, RTN, PXD, ENR, APA, LLL, PNC, ACM

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!

With a 3-quarter streak of positive starts to new quarters in 2010, as well as plenty of recent strength, the bulls had a reputation to protect on Friday.  Technically, they produced another gain, albeit a slight one, to kick off the 4th quarter.

The early action was where the strength was, as I mentioned Thursday evening here, but from there the buyers failed to build on early momentum.  Stocks soon gave up their gains, slipped into negative territory, then stayed range-bound for the remainder of the session.  By the closing bell, incremental gains had been posted, but Thursday’s highs stayed intact.  More importantly, the S&P 500 failed for the second straight session to close above 1150 after crossing it intraday.

So, we’re still in the same spot, both literally and figuratively.  The indexes are holding their ground in short-term trading ranges, sitting above former resistance zones and below the mid-May bounce highs.  The buyers continue to defend their ground, stepping in quickly to provide support on dips, and that’s preventing pullbacks from gathering any steam.

Although every day of rest right now counts, a more prolonged basing period or even some more intense profit-taking would do wonders for the longer-term health of the market.  A shakeout from here would help to mix up the charts a bit, and would offer another opportunity for buyers to get involved at lower prices.  Many are simply unwilling to chase prices here after seeing a near-straight-up run over the past month.  At some point we will see more selling, but for now, the uptrends are still firmly in place.

Stocks are starting to see a little bit of rest, and some patterns are emerging, but more basing action would be best at this point in most cases.

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: MCP, LVS, SKX, BKE, FLIR, TIE

Swing Trading Candidates:

TIE just established a higher low on the daily chart and then advanced nicely.  In recent days, it has consolidated just beneath short-term resistance.  A move up through $20.55 will trigger a buy for me, and as with all day trades, my stop and target levels will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

TIE, JKS, PANL, MCP, RYL, VXX, GOLD, GOL, PRGO, VIT, GDP, MTG, SID, LCAPA, EMR, ALGN, RAX, LVS, FTNT, MIPS, INFN

Bearish Watch:

MON, SKX, BKE, DRI, X, VECO, FLIR, RTN

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 3rd quarter began with the major indexes marking a lasting low, and it’s possible the quarter ended with a short-term high in place as well.  Today’s push to new highs was followed by a substantial reversal, and regardless of the cause, we saw some profit-taking kick in.

The market was able to rally from its worst levels of the day, which is yet another reminder of the presence of dip-buyers right now, as well as perhaps some expectation for an up day tomorrow (with it being the first day of a new quarter – more on that shortly).  However, the finish in the red after marking new highs is a signal to many that some caution here is warranted.  It appears, at least for now, that the indexes need a little more rest before making another push higher.  If anything, today’s turnaround to the downside planted the seed of uncertainty – even if it needs more time to grow.

While I’m not a bear, and don’t care about market direction for that matter, a rest here would certainly benefit this market.  It would allow the rally to possibly put together another leg up (once some rest is seen), and would also enable individual charts to form new bases from which new trades can be placed.  We’ve seen short-term opportunities lately, but for the multi-day or swing timeframe, good setups with defined risk have been few and far between.  Perhaps if a pullback were to kick in, it would shake up the charts a bit in a good way.

Tomorrow marks the start of Q4, and so far we’ve seen positive starts to each quarter this year.  That may influence how stocks start out tomorrow, but as usual, it will be the finish that matters most.

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: VXX, REE, VECO, BAC, NYX, RYL

Swing Trading Candidates:

RYL trended steadily lower from its April peak into June, but since then has leveled out and now is trying to turn back up.  A push up through resistance at $18.15 could put this one back on the move higher, so I’ll be a buyer there.  As with all swing trades, my stop and target levels will be posted on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

CRK, CSTR, RYL, VXX, REE, PVH, WPRT, KG, WCRX, RAX, VMED, RHT, LVS

Bearish Watch:

MON, YHOO, AMAG, DRI, WFC, MET, VECO, BAC, NYX

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 continues to hold up, despite having run a very long way over the past few weeks.  The August lows are a distant memory at this point, we’ve hardly seen any selling, and yet stocks refuse to move lower.

That’s largely due to the presence of dip-buyers, whether they be shorts who desperately need out of losing positions and quickly buy to cover on virtually any weakness, or bulls who feel left behind by this rally and are eager to hop on board at the first sign of lower prices.  Either way, the dips have been shallow and short-lived, and until that changes, it’s still a bull market in the near term.

The trouble here for active traders is that quality bases are very hard to come by.  So little rest and virtually no downside lately have combined to leave many charts with the look of a one-way rally.  That creates the dilemma of “it’s too early to short and too late to buy.”  The continuation of this rally is increasing that frustration among traders on both sides of the tape, but it’s just part of the game.

My response to it is to simply reduce holding timeframes until better, more mature patterns emerge – and they will.  In the meantime, there are some opportunities to participate, but it’s still a difficult spot to buy aggressively.  Even a basic strategy like going long on new highs comes with a caveat, as it’s just not easy right now to determine well-defined, chart-based exits.

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: DOV, PVH, ALGN, STT, WFC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FFIV, CRK, JKS, LAZ, CSTR, IPI, SANM, LEAP, VPRT, NFLX, STP, TDC, MASI, LZB, MTG, SOLF, CSIQ, YGE, PVH, SPWRA, CAT, ETN, WFT, EMR, ALGN, DOV

Bearish Watch:

SKX, SAFM, AMAG, WFC, DRI, GNW, STT

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