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Good evening StockBandits!
It’s good to be back in the saddle after a wonderful vacation last week. My wife and I celebrated our 15th anniversary in beautiful Cabo San Lucas, and it couldn’t have been better. [Read more…]
Good evening StockBandits!
The new week kicked off without excitement today as the major averages simply churned at their highs. The intraday action was uneventful with a NAZ trading range of less than 13 points and an S&P 500 range of less than 6. [Read more…]
The major averages broke out last week, but with varying degrees of intensity. We’ll need to see better unity if this fresh advance is to have legs, so the week ahead will be a very important one for the bulls.
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 exhibited the most strength last week with a hesitation breakout Wednesday followed by a big day Thursday and some follow through on Friday. It has plenty of room to breathe now, with the gap to 3626 being the next downside level to watch. Just beneath that is the prior high just 2 points lower at 3624.
SP500 – The S&P cleared the 1700 level last week, but still isn’t far from it. Volume wasn’t overly impressive either, which means the bulls still have some work to do if they intend to build on this breakout in a more convincing fashion. This is a new all-time high and that should not be discounted, but the breakout needs to stick.
RUT – The RUT avoided the rounded top that still looked to be in play even mid-week last week and pushed north to reach a new all-time high. Here again though, this is only an incremental breakout and therefore the bulls still have some proving to do if it’s going to stick.
DJIA – The DJIA has spent the bulk of the past 3 weeks in a 200-point range between 15400 and 15600. On Thursday and Friday, it closed above 15600 but still is only a few points from it. Volume was light, making this breakout a bit suspect until greater acceleration in price or stronger volume is seen to accompany the start of this new advance.
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Trade Like a Bandit!
Jeff White
Good evening StockBandits!
Last week we saw breakouts in the major averages from their 3-week trading ranges with new multi-year and in some cases all-time highs made (DJIA, S&P 500, RUT). The NAZ saw a big burst higher, while the others eased past short-term resistance to test the waters a bit on the upside. It was a unanimous breakout, but the degree to which we saw strength varied. It leaves traders wondering…is this really a breakout, or isn’t it? [Read more…]
Good evening StockBandits!
The day began with some strength ahead of the Fed and a minor gap higher, but that faded and as the big event drew closer the NAZ was actually attempting to get into that gap. [Read more…]
Good evening StockBandits!
The NAZ was able to make a new high today, but was unable to inspire the others to join it. [Read more…]
Good evening StockBandits!
The high-level standoff continued today as the indexes spent another day beneath breakout territory. [Read more…]
The major averages churned last week, giving nobody satisfaction. The relentless run higher was put on hold for all but the NAZ, yet no pullback was provided for bulls to allocate additional funds or for bears to cover shorts into. It was by all measures a standoff.
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 led the way last week, thanks in part to positive earnings reactions to AAPL, FB, AMZN, SBUX and others. This index was the only one with a meaningful gain, although it held inside its recent high-level base to continue building the large bull flag pattern. A breakout to a new high could see this index stretch its legs further, which would happen beyond 3624. A pullback would be ideal, but it just can’t seem to pull it off.
SP500 – The S&P continues to churn just beneath 1700, and this index also has not been able to put together even a modest pullback. Even quiet declines on Thursday and Friday were each met with afternoon strength, erasing the deficits for each session and leaving this index at its highs by the closing bell. We’ve seen a little bit of rest, but no pullback. Any breakout through 1700 will need to stick, as a breakout followed by a reversal would be viewed by many as a short-term last gasp for this big lift off the June lows.
RUT – The RUT remains just a few points shy of its highs as well, but has attempted to pull back a bit in the past few sessions. This daily chart has a bit more of a rounded look to it than the other flags we’re seeing. Nonetheless, it too is proving to be very resilient despite having become extremely overbought just a few short days ago. Keep a close eye on the high at 1056 and the unfilled gap below with room to 1020 just in case it rolls over.
DJIA – The DJIA is the least extended of the bunch, yet it isn’t likely to take off without the others. For now, it’s in rest mode and that’s certainly a positive way to digest the recent run off the June low. The high is at 15604 and a solid push through there would confirm this bull flag-like pattern, paving the way for much higher prices.
Take a trial of the Stock Pick Service to get my trades.
Trade Like a Bandit!
Jeff White
Good evening StockBandits!
The major averages made no progress last week, and instead simply churned near their recent highs. [Read more…]
