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Good evening StockBandits!
The market put together another rebound attempt today with an upside opening. However, the early strength was again used for selling as we saw a partial gap fill for the first hour of the day. [Read more…]
Good evening StockBandits!
A bounce attempt Friday failed to impress, and as the weekend concluded, overseas markets slipped further. China saw a 5.3% decline Monday on credit concerns, eroding confidence further. The worry produced a downside gap to kick off our week. After a hard pullback, a downside gap is sometimes utilized for upside reversals, but not today. [Read more…]
The lower high I discussed in the index review two weeks ago was confirmed last week as post-FOMC selling pressure left the indexes undercutting support zones in a swift decline. We’ve been cautious and biased to the short side lately inside the member area, and that has served us well. Now, we need to wait for a bounce back to reload shorts, as trapped bulls will very likely be using any strength from here to raise cash.
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 broke 3370 on Friday, filled the May gap, and then attempted to rebound from its lows after becoming short-term stretched yet was unable to go green on the session. The gap fill completed some unfinished business for this index, and now it’s just a matter of how far the initial bounce carries. Any stalled-out price action will likely invite more selling, reminding those who haven’t raised cash yet that it’s not too late. Just look back 2 years for a reminder of how quickly a market can crumble.
SP500 – The S&P broke below its uptrend channel and lateral support at 1597 to test some late-April support at 1577 before rebounding a bit on Friday afternoon. Interestingly, it couldn’t reclaim the 1597 level on a closing basis Friday after lifting just beyond that level in the final hour of trading. This is a major technical break and should not be viewed at this point as any old dip to buy. It just confirmed a lower high and that should not be taken lightly.
RUT – The RUT undercut 970 last week and retreated immediately to the 954 area I’ve highlighted here numerous times. It was able to bounce back a bit on Friday, but isn’t trustworthy after this hard breakdown. Next level to watch is the unfilled gap to the 940 area from the close on May 2nd.
DJIA – The DJIA rebounded last week to test the 15300 area, but couldn’t hold it and quickly sold off hard. The subsequent break of 14887 was met with an additional decline to 14688 before a Friday afternoon bounce took it back up toward broken support where it currently stands. This index just confirmed a lower high (15340 vs. 15542) so the current bounce may not last long beyond the initial snap back.
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Trade Like a Bandit!
Jeff White
Some traders spend every day on Twitter, posting dozens of trades and conversing nonstop. It can be a lot to keep up with!
I try not to clutter the feed with non-pertinent info, unless it’s the evening or weekend when I might do a little more. Regarding my market thoughts, however, I’ve put out some useful ideas recently which you stood to benefit from if you’re following.
For example, on May 22nd at 10:01AM, I posted the following:
That proved to be timely, as it’s currently standing as the market top.
This week, I shared some additional thoughts on the eve of the FOMC announcement.
Note that I didn’t predict anything, as that’s just not my style. But I did point out the possibility for a downside reversal post-FOMC, as well as provide some reasons behind it.
Remaining a student of the recent price action will keep you on track. If you’re listening to other opinions, be sure they’re objective and not of the crystal-ball variety.
Trade Like a Bandit!
Jeff White
Take a trial to the Stock Pick Service to get my trades.
Good evening StockBandits!
Last week proved pivotal with downside trading range breaks across the board. Stocks had rallied right into the FOMC meeting, and true to recent reversal-prone form, we saw a turn of direction after the news which left market participants in every asset class raising cash. [Read more…]
Today TheStockBandit turns 9, which is yet another big milestone I’m both thankful for and excited about!
It was June 21, 2004 that I began putting out a nightly report via the website as opposed to just email as I had done for awhile prior to then.
Since that day, the site has grown in popularity and reputation as a result of consistent work that has aided traders literally all over the world. There have been easy and profitable times, and there have been tough periods as well, but overall it’s been a joy to have the opportunity to help traders grow in their abilities and skills in the market.
Now 9 years later, we’re still going strong.
There’s plenty of ongoing free content here to help those of you who aren’t subscribers, but through the stock pick service I’m providing more in-depth analysis, stocks to watch, and of course my personal detailed trading plan. This week, for example, short positions (no longs) in SCCO, FSLR, and TSO allowed us to book nice, quick gains.
Additionally, our stock trading courses continue to prepare traders for all kinds of market conditions, allowing them to roll into different strategies when the market conditions shift (as they did this week).
There’s zero risk to kick the tires on what we offer, plus I’m always available to help subscribers and course students. For those curious about what it is we do, we’d love the chance to show you why we’ve thrived this long, as there are many reasons.
Trade Like a Bandit!
Jeff White
Take a trial to the Stock Pick Service to get my trades.
GOOG has been not just a tech leader, but a market leader since the November lows, putting up gains of more than 40% from its low to the May high (almost twice the performance of the NAZ).
In recent weeks, we’ve seen a gradual pullback in a channel fashion, which was resolved higher earlier this month as the stock began a new leg up, presumably to challenge the highs near $920 from May. However, this week, the stock hasn’t been immune to broad market weakness and suddenly has a very different look on the daily chart. It’s now looking like an intermediate term lower high has emerged (near $910) given the break of rising support off the pullback low.
Time will tell if GOOG is indeed topping, but the astute trader should recognize this as reason for elevated caution. It’s grounds for lightening up on long positions at a minimum, even if the bear case still needs some work.
Here’s a look at the daily chart, where a lower high is in place for now:
Take a trial to our Stock Pick Service to get our trades.
Trade Like a Bandit!
Jeff White
Good evening StockBandits!
As noted last night, I’m on the road this evening but wanted to bring a brief update after such a significant day in the market. [Read more…]
Good evening StockBandits!
The week’s most-anticipated event was today with the FOMC, and it didn’t disappoint in delivering some fireworks to the market. [Read more…]
Good evening StockBandits!
The indexes moved past their June highs today to enter the upper ends of their respective trading ranges ahead of the Wednesday Fed day. [Read more…]
