TheStockBandit.com

Good evening StockBandits!

Last week we saw early downside on Monday as the market attempted to add to the previous week’s selling pressure, but a reversal kicked in which carried the indexes higher for the remainder of the week.  Thus, the recovery bounce from the recent pullback is still in effect, leaving the door wide open for both the bulls and bears to take control.

If the bulls are able to keep the pressure on, we could climb right back up to the October highs.  However, if they relent, the bears could realize a lower high on the daily charts and start calling for a possible trend change.

At this point it’s still too early to call, so the best bet is to stay on our toes and continue playing the setups which come along.  Earnings season is starting to wind down a bit, which should present more swing trading opportunities for us in the weeks ahead.  I’m looking forward to it, as we’re getting some increased volatility and that means bigger moves are starting to arrive.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SWK, HGSI, WHR, BXP, MON, MICC

Swing Trading Candidates:

MON broke the $70 area a couple of weeks ago and continued lower.  Since then it has bounced on weaker volume back up to test former support, and Friday was unable to reclaim it on a closing basis.  This looks like a failing bounce within a downtrend, so I’m watching for a break of the small rising trend line to trigger a short sale at $68.70.

Chart courtesy of StockFinder

MICC turned sharply lower from its October high and broke key support on heavy volume.  Last week this stock bounced back on light volume to test that former support level from below, and could not reclaim it.  The bounce also has created a bearish rising wedge pattern, which if broken to the downside could spark another wave of selling.  I’ll be using the lower trend line at $66 as my pivot for a short sale if broken.

Chart courtesy of StockFinder

Bullish Watch:

V, PNC, TNB, HS, SWK, GOL, TUP, PRGO, HGSI

Bearish Watch:

WHR, CPT, CNW, NTRS, MCO, BXP, MON, SOHU, APOL, GRMN, MICC, CLI, FSLR, AEM, LEAP

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!

Wednesday’s post-FOMC selloff erased the day’s solid early gains, giving the appearance that the bounce on the daily charts of the indexes was already failing.  However, the buyers were back in form today, quickly reclaiming yesterday’s highs and easily pushing back through them as the market tacked on 2%.

The back-and-forth volatility is a welcomed change for traders, particularly on an intraday basis, but there are some mixed signals on the daily charts tonight which are keeping the picture a bit foggy.  Tomorrow morning we have the economic situation which could easily spark another opening gap in either direction, making it a tricky spot to try to get positioned very heavily on either side of the tape right now.  It’s a time when a stick-and-move approach is likely best, so I’m planning on keeping my timeframes brief as we head into Friday.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SWK, PODD, GOL, HGSI, AONE, APOL, FSLR, AEM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CAT, TNB, GY, SWK, PODD, GOL, GAP, CFN, PRGO, HGSI

Bearish Watch:

AONE, APOL, LTD, CLI, ALTR, FSLR, AEM, PSYS

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!

With stocks having spent the past few days still rather oversold, conditions were ripe for a bounce today.  For a while, that’s exactly what we saw as the buyers put cash to work and the indexes headed north ahead of the FOMC announcement.  Once the news was out, the usual back-and-forth indecision followed.  The market tagged the session highs, and that was it.  As the final hour unfolded, so did the rally, and stocks gave back their gains to finish nearly unchanged on the session. [Read more…]

Good evening StockBandits!

This market is really struggling to bounce.  With the first substantial pullback in a while having taken place in recent days, the word “oversold” is surfacing in many places.  While everyone’s definition of that may differ slightly, we can all agree that the underlying premise is that prices are moving lower at a pace which isn’t sustainable.  From there, we know that either some stabilization will set in and a rest arrives, or a bounce eventually comes along to alleviate some of the pain (temporarily at least).  Right now we’re still oversold, but stabilization hasn’t happened and neither has the bounce. [Read more…]

Good evening StockBandits!

With the market having bounced a significant amount from the October lows, it finally began to stall out.  We saw the NAZ test its high of 2190 without clearing it, and the S&P 500 struggled with the 1100 level.

Two Fridays ago, we saw a downside reversal which sent the bulls home with something to think about over the weekend.  Last week, they returned in the mood to raise cash, and the selloff lasted through Wednesday.  Thursday’s relief bounce was attractive on the surface with nearly a 200-point gain on the DJIA and a solid advance for the S&P 500, but volume was lighter and the NAZ was unable to erase even the prior day’s losses.

I noted here that an inside day like we saw on Thursday can often prove to be a rest day before a resumption of the short-term trend, which is down, and that’s what we saw on Friday as stocks came under pressure to make new pullback lows.  The NAZ found short-term support at the October low of 2040 to keep the uptrend intact (for now), but finished only a few points away from that important level.

So as we head into a new week, it’s tricky.  Short-term, the weakness is showing us that the buyers are lacking the strength and resolve they had just a couple of weeks ago.  That has me very cautious on the long side.  At the same time, another relief bounce could arrive anytime and take the indexes quickly higher as bulls hope for another higher low and bears rush to cover shorts.  So I’m planning to keep caution levels high for another day or two, but the expansion we’re seeing in volatility is a very encouraging sign from a trading standpoint – and I’m excited about it!

One final note is that I will be traveling on Monday evening and therefore will be unable to post an update Monday night.  Things will be back to normal come Tuesday though.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CP, UA, PSS, AONE, JLL, NTRI, CHKP, WHR, FCN, BNI, BEN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SRS, NTRI, CHKP

Bearish Watch:

WHR, AONE, RL, CREE, STEC, AM, TCO, ANF, FSYS, SY, JEF, HOC, FCN, VMI, BEN, LEN, JLL

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