TheStockBandit.com

Good evening StockBandits!

Last week we saw a positive start which took the market to its best levels of the year as the S&P 500 reclaimed the 1100 level on a closing basis.  The upside saw no follow through, however, and the week ended in a different manner as selling pressure erased the early gains.

The downside wasn’t anything major, but it was enough to remind us that the market still hasn’t seen much of a correction throughout this entire rally.  The pullbacks have remained very shallow and brief, and the dip-buyers have stepped in repeatedly to offer support.  Friday was another example of that as we saw yet another afternoon bounce which diminished the losses of the day.  The trend remains up, and that deserves our respect, but we need to stay mindful of the fact that at some point we’ll see harsher selling kick in.

For the week ahead, we’ll likely see lighter volume as traders step away for the Thanksgiving holiday, and that’s worth noting.  The market will be closed on Thursday and only open for a 1/2 day on Friday, so it’s certainly a time when trading smaller size and keeping timeframes shortened is warranted given the lighter overall participation we’re likely to have.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CAAS, TSTC, AXP, REV, PCLN, NANO, STT, UPL, CLR, FE

Swing Trading Candidates:

FE has settled into a descending triangle pattern as it trends lower from its Sept/Oct double top pattern.  In the near term, the bounces have carried to lower levels, while short-term support is being tested.  A breakdown through support at $41.40 will trigger a short sale for me as a swing trade.

Chart courtesy of StockFinder

Bullish Watch:

BBY, REV, FCX, HOLI, GOL, RAI, AXP, TX, PCLN, CAAS, HEAT, DLB, MON, NANO, GAP, PRGO, MEE, LNCR, RGLD, HNT, CGA, GLD, LIHR, LNY, CML, TYC, CCI, LFT, TSTC

Bearish Watch:

WFMI, FE, NTRS, UNT, OIS, ERTS, STT, VMC, BX, CLR, UPL, ZION

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A negative start to the day brought about some additional selling as the morning gap to the downside inspired traders to raise some cash.  The lows of the session were found late in the morning though, never to be seen again.  From there, the indexes were able to stabilize and recover a portion of the morning losses, although they did remain in negative territory.

Once again, early weakness was partially offset by some afternoon buying, which is another glimpse of the dip-buyers stepping in to do their thing.  They’ve been paid well every single time they’ve done it since March, so they’re conditioned to respond in this manner.  Whether this time will prove fruitful for them or not remains to be seen, but the intraday bounce reminds us that even on a down day the sellers aren’t the ones in control.

Heading into Friday, it’s an options expiration day, which brings some unusual elements into play for the day.  It is also a Friday ahead of a major holiday with Thanksgiving being next week, so it’s a day on which I’ll be very patient as well as selective with new trades.  Keep that in mind particularly as the afternoon arrives, as more traders will have reason to start the weekend early if no momentum is present.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: RINO, REV, FE, CVC, BBY, DLB, ERTS, CYT

Swing Trading Candidates:

NONE TONIGHT.

Bullish Watch:

AXP, RAI, CVC, GOL, HOLI, RINO, FCX, ACL, REV, TX, UIS, BBY, PCLN, CAAS, NARA, HEAT, DLB

Bearish Watch:

WFMI, AYE, PVA, UNT, LUK, NTRS, OIS, WINN, HOT, FE, CNW, ITG, ERTS, MCO, MET, CYT

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major indexes spent the day in negative territory today, unable to gather any traction in either direction.  The selling pressure was mild and temporary, as the session lows were made early in the afternoon before a gradual rebound arrived.  The late-day bounce erased most of the losses, leaving the indexes only down slightly on the day.

Today’s action marks another day of rest, and it’s worth noting here that the bulls are hanging tough.  Shallow dips with late-day bounces characterize bull markets, which is what we’re in.  Having just attained new recovery highs from the March low, the trend is still up and a few quiet days like we’ve had the past 2 sessions is certainly a good way to digest recent gains.  It’s a reminder to us to stay very selective when trading the short side, while watching closely to see if the upside momentum will return.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CAT, MMM, UIS, RAI, ACL, COP, KMX, HAL, BEN

Swing Trading Candidates:

NONE TONIGHT.

Bullish Watch:

HAL, CAT, BXP, RAI, BEN, MMM, ACL, CVX, USO, UIS, FOSL, COP, TSTC, PCLN, PLD, KSU, ACF, AMB

Bearish Watch:

WFMI, RRC, GYMB, ITG, AMED, KMX

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following Monday’s breakouts, the indexes weren’t able to do a whole lot today.  A minor test of the downside this morning did find buyers though, and from there we saw the market trend gradually higher into the closing bell.  By the end of the day the indexes were positive, but overall it was a well-deserved day of rest.

With key levels being cleared yesterday across the board, some follow through is expected by many relatively soon.  The fact that the market has run a considerable distance just in the last 2 weeks does warrant some rest, but breakouts generally should be followed by additional strength, particularly when they occur after a few days of rest like we saw last week.  Regardless, today’s quiet action is a healthy way to digest Monday’s gains, and the bulls provided yet another reminder by offering support on even the slightest dip that they still fully intend to defend the uptrend.

Before we get to tonight’s video, I just want to be sure you were able to check out today’s post for The Bandit Blueprint.  It’s a spreadsheet created by a fellow Bandit, and it’s intended to assist you with position-sizing and decision-making on trades.  Be sure to check it out when you get a chance, I think you’ll find it incredibly useful!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed:  CAT, MMM, UIS, CTRP, ITG, AMED, HAL, BEN, USO

Swing Trading Candidates:

HAL is once again challenging upper resistance here within an uptrend, which means another leg up could begin any day.  I’ll be using the trend line at $32.05 as a pivot for a buy, but will only be a buyer once that level is cleared.

Chart courtesy of StockFinder

BEN has been constructing a well-defined cup & handle pattern over the past few weeks, and is now acting as if it could break out from this pattern any day as it challenges upper resistance.  I’ll be a buyer if and when the $116.50 level is broken as this stock begins a new leg up.

Chart courtesy of StockFinder

USO is an oil tracking ETF and here it is sitting at the top of its recent descending channel after a nice advance during October.  This creates a large bull flag pattern, and a breakout above the channel at $41 will trigger a buy for me.

Chart courtesy of StockFinder

Bullish Watch:

NTRI, HAL, FCN, CAT, LCAPA, BEN, FCX, MMM, TUP, CVX, FDX, MELI, TX, USO, UIS, OIS, CTRP, TXT, COP, PCLN

Bearish Watch:

AMED, WFMI, MCO, RAH, ARO, AMAG, LEN, ITG, STEC

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A positive start to the week quickly found momentum this morning as the indexes jumped right out of the gate.  A big surge in buying kicked in right after the opening bell, taking each of the indexes to new recovery highs on the year as stocks continued their climb.  Some afternoon profit-taking did bring the market down a bit from its best levels of the day, but all in all it was a very solid performance by the bulls.

Aside from the impressive point gains, each of the indexes cleared key levels today, making it a technically significant day as well.  The S&P 500 closed above 1100, the NAZ closed above 2190, and the DJIA finished above 10,400.  Each of those zones have been outlined here in recent weeks and months, so the key going forward will be whether or not the bulls can build on today’s strength.  We’ve seen quite a run just in the past couple of weeks, but with momentum on their side, the bulls could continue to drive stocks higher for a little while longer.

At some point we’ll need to see a more meaningful rest, but the few days of quiet action we saw last week helped to alleviate some of the overbought conditions which had emerged, paving the way for another leg up.  Today’s move could be the start of it, but it’s still a time to stay on our guard just in case conditions shift suddenly.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed:  WHR, NTRI, HBI, UIS, WYNN, ARO, WFMI

Swing Trading Candidates:

WFMI has established the $26.70 area as a key level in recent months with it serving as both resistance and support.  In the past few weeks, the stock has trended lower to approach that level once again, and after a failed bounce attempt which created the ‘h’ pattern, it may be poised for another move lower.  There is an unfilled gap from early August which I’ll be using as my target for this one, and I’ll look to short sell it if it undercuts the $26.70 horizontal trend line.

Chart courtesy of StockFinder

Bullish Watch:

WHR, NTRI, FCEA, FCN, ADSK, CHKP, MGA, MCK, LCAPA, REV, MMM, TUP, CVX, FDX, DTV, HBI, SFD, UIS, HMIN, SGY, EMN

Bearish Watch:

AONE, WFMI, FUQI, WYNN, STEC, RRC

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff