Swing Trading and momentum investing stock pick newsletter and swing trading service.
Good evening StockBandits!
Tuesday’s inside day was lacking in several regards, as discussed here last night. Not only did price fail to recover the prior day’s losses (which would not be out of the question on an upside reversal day), but we also saw the averages unable to reclaim recently broken important levels – all on light upside volume. [Read more…]
Good evening StockBandits!
The oversold bounce arrived today with a snapback rally that left each of the averages in positive territory on the day. The only problem for the bulls was that it really paled in comparison to the swift declines of the past three sessions. [Read more…]
Good evening StockBandits!
The selloff which started last week saw continuation today with each of the averages losing more ground. The new week began pretty flat, but selling throughout the morning left the market painting just its third consecutive decline, yet at levels not seen in more than a month. [Read more…]
The averages were sending mixed signals as recently as last Wednesday, but by Friday they were all singing the same tune: selloff. The NAZ and RUT were making new multi-year and all-time highs, but the blue chip S&P 500 and DJIA each were hesitant to challenge resistance. The senior indexes dragged the others along for a turbulent ride for Thursday and Friday, leaving each of them with rapidly deteriorating technical conditions.
As we head into a new week of trading, it’s time once again to take a look at the indexes and the key levels they’re dealing with. This will impact how individual names move, so it’s where every new trading week begins.
NAZ – The NAZ took a dive right off its fresh multi-year high from Wednesday of 4246 to finish 118 points lower by Friday’s close. In the process, it gave up 4177 and now stands just 24 points from next key multi-week support of 4104.
SP500 – The S&P never could clear resistance despite numerous opportunities, including last week. It turned south on Thursday then hit the dirt on Friday to finish 60 points below 1850. This hard breakdown from the multi-week trading range (1823) was accentuated by the decisive break of rising support going back to last October. This index is not in good shape with price action like this, so the bulls are on their heels.
RUT – The RUT was just 5 points from a measured move target of 1187 as of Wednesday, but a hard selloff on Thursday and Friday left it not only below the 1167 breakout but also below the low end of the range at 1147. This is a huge failure for the small-caps, and now a former high at 1123 is the next level to watch on the way down.
DJIA – The DJIA shed 318 on Friday alone, but was down all 4 sessions last week. This index has been the clear laggard, and the failure to hold 16400 was quickly followed by a break below the former high of 16174. Now we need to watch 15703, the December low, as next potential support.
VIX – Complacency is so two weeks ago. Last week it took a hike. The VIX spiked big as a result, jumping over 45% in the 4-day trading week to clear 18. This ‘fear index’ is fresh off a test of long-term support at 12, but hasn’t cleared the first real threshold yet. That is 20, which we’ve only seen 4 closes above in the past 18 months. This index belongs on the radar for now as we watch to see if it continues to spike along with broad market weakness.
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Trade Like a Bandit!
Jeff White
Good evening StockBandits!
The indexes took 2.6-to-3.1% haircuts in the last 2 sessions to end the holiday-shortened week in very poor technical shape. [Read more…]
Good evening StockBandits!
What kind of day was it in the market today? It depends on whether you’re looking at techs and small-caps, or if instead you’re looking at the blue chips. [Read more…]
Good evening StockBandits!
The S&P rallied right to resistance this morning to kick off the holiday-shortened week on a positive note. [Read more…]
The indexes struggled to make headway last week with a failed breakout in the S&P 500. The NAZ and RUT each broke out, but have since pulled back to test the breakout zone, putting them in a vulnerable position for failure if the bulls don’t get in gear soon.
Although my detailed trading plan is reserved for members of the site, I wanted to nonetheless share 5 setups of interest I ran across this weekend in doing my research.
Put them on your radar and keep assessing them daily. As setups are negated or fail, seek out some replacements. As setups confirm their patterns, observe their price and volume behavior closely to gauge whether or not they still have some gas in the tank.
Here are 5 setups of interest for this week:
AMGN is facing a potential breakout to an all-time high if it can clear the $120 area. There’s plenty of blue sky above for it to gain momentum.
SFUN has been rallying in a rhythmic fashion in recent weeks with several lateral and descending trend lines being cleared. Watch the current pivot for another potential move.
ORLY is facing major resistance here but a breakout through $135.70 could set this one free to continue higher.
ZU is facing short-term declining resistance but a push through $41.70 could put it back in rally mode after the recent dip.
FDX stalled out and failed to clear resistance a few weeks ago. It now is hugging rising support, which could set off a downside trend change if broken in the coming days.
Through the nightly service, I share swing trade setups with members here including my planned entry, stop, and target levels. I also produce Charts on Demand for a special Thursday educational video. Check out the trial if you’d like to kick the tires.
Trade Like a Bandit!
Jeff White
Take a trial to our Stock Pick Service to get our trades.
Good evening StockBandits!
The indexes made some modest progress last week with the exception of the S&P, but breakout attempts failed to produce upside fireworks. [Read more…]
