Good evening StockBandits!

The opening bell this morning arrived with a soft open as stocks gapped slightly lower to start the week.  New lows were made shortly after for the day, but the downside never really gained momentum.  Instead, stocks stabilized and grinded their way higher for the rest of the day, leaving the NAZ in positive territory and the S&P and DJIA only down slightly for the session.

Dip buyers are still present, and why wouldn’t they be?  The overall trends remain up, we’ve respected former key resistance levels as support when tested, and every dip since August has been bought.  So while strength is still present, we’re still sitting in a holding pattern here in the short term.  That equates to rest for the market, which is healthy, but it means we must continue to be selective with new plays until more widespread momentum returns – one way or the other.

Tonight I’m seeing quite a few stocks which are in the midst of consolidations, as evidenced in the bullish watch list at the bottom of the newsletter.  However, the problem is that the market itself isn’t gaining momentum, and neither are many of these stocks.  I like to see a strong close which challenges resistance (or a trend line), along with a positive net change and an increase in volume, if possible, to signal an impending breakout.  Few stocks are exhibiting that behavior tonight, so I’ll be keeping an abbreviated trading timeframe once again heading into Tuesday’s session, as well as a narrow list of names to focus on.  As more setups emerge which look ready for moves, including swing trades, I’ll certainly have them here.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CVH, APC, DIS, ENTR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LBTYA, KEM, NTAP, ANR, AMTD, LEAP, SRZ, TQNT, APA, CBS, MGA, SINA, CVH, NCR, SPRD, PCX, DIS, NAK, JCI, CNX, ENTR, MMR, ETFC, BYD, ACOM, APC, MHR, AXTI, NFLX, RVBD, MEE, VSH

Bearish Watch:

MCD, WDC, SNI, BVN, AEM

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The market surprised quite a few people last week by doing very little.  Some had forecasted for a sharp decline post-New Year which would catch many bulls off guard.  Others were looking for a spike into the first week of January, and although Monday’s session began that way, the follow through never materialized into the remainder of the week.  Case in point, the SPY finished only $0.48 higher than Monday’s opening price by Friday’s close.

It will be a long year with plenty of movement, I have no doubt.  However, 2011 has begun much like the end-of-year trading action we saw over the prior few weeks.  During that time, we’ve seen occasional up moves followed by several days of basing, and that’s how last week played out.  The lone exception from a technical standpoint was the volume, which has returned (thankfully) to much stronger levels.  With liquidity back in the picture, the trading scene should only improve with a bit more volatility.

From a trading standpoint, last week there were only select moves taking place, and I was pleased with it overall.  There were only 2 swing trades I took interest in, but they both behaved quite well and produced nice gains.  There were some day trade failures and some successes, but overall it proved to be a week where doing less was more.  In a wait-and-see type of market like we’re in right now, that’s to be expected.  I plan to continue to maintain a limited focus list until we see things get shaken up, and at some point they will.  The idea is not to grow impatient while waiting, and with some solid trades coming our way last week, it makes it easier to pick and choose our spots for involvement.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: ANR, MGA, CCME, SLV, COH

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AA, LVS, DIS, NFLX, APC, TQNT, RVBD, CNX, ENTR, SOL, BYD, MTL, DVN, ANR, MTW, MGA, ERX, CCME, ZAGG, OSK, AXTI, SCOK, CIS, NOR

Bearish Watch:

SLV, NG, COH, NKE, KMX, AEM, LO, UA, SRCL

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Today we saw another session of minor net changes, and for once that actually told the story of the day.  There were no lasting intraday moves, and the indexes finished little-changed and mixed.  Volume held strong, which is evidence that there’s ample liquidity here, but as traders what we really need to see is more widespread momentum in one direction or another.

The limited movement of the day made for narrow ranges, which most likely was due to traders unwilling to stay with new positions ahead of tomorrow’s jobs report.  That’s a big focus of the market right now, so with a potential gap looming tomorrow, it seems most traders were content to flip out shares into brief periods of strength or weakness today, preventing any big moves from really developing.

I’m still seeing quite a few charts which are simply churning here, which is to say they’re basing.  Many have alternated strong and weak closes this week, showing they’re simply treading water while waiting for a bigger catalyst to really produce a move.  Given that there’s such limited follow through at the moment, I’m still keeping my timeframe short while we wait for better momentum to surface, and for Friday, that means day trades for new plays while I continue to manage my existing swing positions.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: YOKU, LEN, FWLT, MCD

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FCS, RVBD, LEN, CBS, ATML, YOKU, DANG, IVZ, ITMN, FNSR, FWLT, TSL, MTW, TSLA, CF, KKR, AGU, MMR, STEC, HUM, JBHT, GMXR, OC, ILMN, VHC

Bearish Watch:

MCD, NG, NFLX, NKE, KMX, RHT, WHR, DVA, MSB, UA, LFT, SAFM

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Stocks battled back from a weak start this morning, erasing an opening gap to the downside rather quickly.  From there, the market staged as steady rally into mid-day, where things slowed down for the final few hours of the day.  The indexes were able to add minor gains in the afternoon to their morning strength, going out right near their highs of the session.

Today’s move covered the losses we saw on Tuesday for the NAZ and S&P 500, reminding us that the buyers are still being aggressive on dips.  The uptrends are still intact, and as of tonight the indexes are each either at new highs or just a short distance from them.

The pullback-and-rebound action of the past couple of sessions has made for some whippy trading intraday, but it’s been an essential pair of rest days for many stocks.  That’s helping to build more bases on the charts tonight of individual stocks, so I’ll continue to keep a close eye on what’s setting up in the days ahead.  I have a pair of swing trades on (see the Hit List), but heading into Thursday’s session am not looking to add more overnight exposure just yet.  As the setups arrive which warrant new positions, I’ll certainly have them here.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: STEC, ITMN, SCOK, MTW, SAFM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, V, ATML, NTAP, APC, LEN, AG, ITMN, VSH, KBH, WLT, MTW, KKR, TSLA, MMR, BZH, STEC, CBL, AGCO, ILMN, DEXO, DHX, BLL, BEAV, SCOK

Bearish Watch:

SAFM, YUM, NKE

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A steady morning slide into negative territory left traders with a dilemma today, and the buyers responded with an afternoon rally which erased the majority of the day’s losses.  The DJIA actually finished positive, and once again we see evidence that even on a day absent of momentum, the uptrend is still intact.  We also saw volume pick up from yesterday’s levels in most cases, showing continued post-holidays participation, even if it may have been tied to the intraday down-and-back battle we saw.

Today’s action allowed much of Monday’s upside gap to get filled, and yet by the close we saw recent resistance zones cleared once again.  So although on the surface it looked like little took place today, there was some important technical action which the net changes simply don’t reflect.  Often times that’s the case in the market.

Many individual stocks are still digesting Monday’s moves, leaving me uniterested in adding more overnight (swing) exposure in tomorrow’s session.  Instead, I’ll stick with the two names I added today (please see the Hit List below for details) and otherwise will focus on a handful of day trade candidates which look poised to offer some single-day potential, provided of course they can clear the levels highlighted in tonight’s video.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: LVS, FCS, BLL, KMX, TIE, SAFM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, ATML, CBS, NTAP, ITMN, ENTR, VSH, SOL, CMA, BYD, KKR, NDAQ, FCS, URI, STEC, HLS, CCME, SPMD, BLL, TMK, NXPI

Bearish Watch:

TIE, COH, YUM, NKE, KMX, BVN, UA, SAFM

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The New Year began today for the market with a big gap to the upside and some additional strength which followed.  And although the market slipped from its best levels by the closing bell, the bulls still made meaningful strides today with a push to new highs across the board.  The intraday ranges expanded a bit, and volume jumped considerably, which was very nice to see.  That points to much higher overall participation, which should make for a better trading environment than what we’ve seen in the last two weeks.

The indexes continue to exhibit strength, and while it is just the first week of January (and thus, anything is possible), it’s a solid start for the year.  We have room to move higher in each of the averages, and if today’s action was any indication, the bulls may be intent on producing those moves.  Earnings season won’t begin in earnest for a little while longer, which means the focus for a little while is likely to stay on the price action and the economy, both of which have promoted plenty of upside in recent months.

As a result of the return of volume and volatility today, more setups are present tonight and that spells opportunity for tomorrow’s session.  Many stocks moved big today and may need a rest, but there are also plenty of stocks which could play catch up in the days to come.  I’ll get to several momentarily when we get to the video.

One final note I want to make here is one of encouragement.  Anytime the market jumps right out of the gate with a gap like we saw today, you either have to chase strength or be long overnight in front of it.  And as a result, tonight you might be feeling some discouragement if you feel you lagged today.  Let me say this:  don’t!  The year is long, and while we may all be a bit impatient and don’t enjoy waiting for more opportunities, the fact is that they will come.  There will be many days this year where you outperform drastically, and you need to trust that.  Great trading is about catching some moves, yes, but it’s also about avoiding mistakes.  If you go out tomorrow trying to make up for perceived lost opportunity today, that’s a mistake, so avoid doing that.  Take the setups you know, manage them accordingly, and remember that trading is a marathon and not a sprint.  Do your best each day, but take a long-haul approach and believe that your method over time will produce for you.  That’s what it’s all about.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: SINA, CBL, CCME, AEM, BVN, KKR, ATML

Swing Trading Candidates:

KKR cleared resistance two weeks ago and pulled back, holding well above the breakout zone.  This one may be getting ready for another leg up, so I’m watching for a push through the trend line at $14.60 to trigger a buy.  As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

ATML is currently resting within an uptrend, but may be gearing up for another push higher if today’s advance within the base is any indication.  I’m watching for a push through $12.70 to trigger a buy as this one would begin a new leg higher with a move up through that level.  As with all swing trades, my stop and target levels for this trade are found on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

Bullish Watch:

ATML, AIG, CBS, DIS, MAS, NTAP, RVBD, IR, MIPS, MTG, AVL, CMA, SVM, NDAQ, MTW, ATPG, KKR, SINA, WHR, CBL, MHR, CCME, SPMD, REMX, PEI, NXPI, SFY, NVTL

Bearish Watch:

NFLX, COH, YUM, AEM, BVN, SODA

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Happy New Year StockBandits!

I hope your holidays have been good and relaxing, and you’re mentally prepared for a new year of trading.  Let’s make it a great one!

Last week we saw the market finish with a little downside as some late-day selling on Thursday carried over into Friday morning.  The buyers never surfaced, but the market still didn’t crack, and instead remained in its short-term holding pattern.

We’ve seen quite a few narrow-range days over the past two weeks, and that’s likely the result of a market which has run a long way.  That has left traders less willing to chase stocks after a run, while leaving those with some inventory on their hands unwilling to dump it in case we happened to see some continued strength into the end of the year.  And those quiet days have served to digest the recent run, even though we’ve yet to see a meaningful pullback.

But with a brand new year comes some new challenges, and we’ve got to prepare for anything to come our way in the days, weeks, and months ahead.  As a short-term trader, I’m of course interested in what takes place now rather than months down the road, so I’ll leave that to the economists and those who attempt to predict how stocks will move and what will cause it.  So let’s talk present-tense…

We’re in an uptrend, and it has become pretty mundane.  I’m not eager to short this market until some technical evidence emerges to support that it’s time to start selling.  But I am on my toes and keeping an open mind in case such things begin to surface.  I’ll be staying aware in case rallies fail, we see some weak finishes, and we see pullbacks intensify rather than pull buyers off the sidelines.  And we could also persist higher.  There are resistance zones from 2008 we could challenge, or we could blow right through them as if they don’t exist.  Either way, I don’t care which way stocks head, because you and I will still have opportunities to profit if we continue to study the price action and wait for good risk/reward setups to come along.

For tomorrow, there are a handful of setups I think could offer some potential, so I’ll focus my efforts on them and otherwise look to lay low while the cross-currents of the first trading session of the year come to pass. I’d like to see the overall volume improve, and I expect it to this week, but will be patient the first session or two of the new year to see if the market can settle into a rhythm.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: SLB, STEC, ATML, NFLX, COH

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, MGM, HL, WFT, SLW, ATML, AIG, SLB, NTAP, ENTR, POT, STEC, AXU

Bearish Watch:

BIDU, NFLX, COH, KMX, RHT, CMG, DRIV, FSYS, DRQ

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Another session resulting in minor net changes for the indexes today left few surprised, as volume continued to run well below average.  That points to an ongoing lack of participation here as we approach the end of the year with only two sessions left before New Year’s.  It’s resulting in extremely narrow ranges, no momentum, and reduced liquidity – all of which leave me less than interested in doing much beyond a handful of day trades.

Technically, this market is set up well, as we’ve seen rallies and bases in recent weeks to prevent prices from getting too stretched.  That could easily allow another push higher once greater participation is here, but at the moment, it seems the market is on hold until next week when more traders are likely to be back at their screens.  Stated otherwise, it’s still a bull market, so I’m not eager to fade it, but without better upside momentum it’s best to be selective here while we wait for more movement.

Heading into tomorrow, there are a handful of names on my radar – all of which will be day trades if they happen to trigger entries.  I’ll be keeping my initial risk at 1% and looking for moves of 2-4%, just looking to grab the initial moves through the levels specified below and then I’ll head back to the sidelines.

I typically take this entire week off (as I noted last night) for the very reason of light volume and a lack of movement, so rather than try to press new trades and load up on a lot of positions, I’m looking to just grab a piece of the action and then get back out.  I just don’t trust the moves to last long in this kind of environment, and the past several sessions have offered plenty of reason to feel that way (aside from experience from years past).

This will be the final Broadcast of 2010, as I don’t plan to trade on Friday.  I had expected to see volume improve as this week progressed, but that didn’t happen, so I’ll take my cue from the market that it’s likely best to take a long weekend and prep for 2011.  I hope 2010 has been a good one for you in every way, and when it comes to trading, let’s aim for the sky in 2011!

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Bullish Watch:

SLB, RVBD, PCX, JRCC, DHX, BYD, BKD, BEAV, BID, IR, MGM, LVS, SPRD, ATPG, RAX, ACI, STEC, EW, KKR, CAM

Bearish Watch:

CMG, CRM, CSTR

The Hit List contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes finished little-changed again today as some early weakness and some afternoon strength essentially offset one another.  Volume remained light, although it did improve slightly over Monday’s levels.  That’s the trend I am expecting to see this week, but it might still stay limited here as we’re caught right between two major holidays and we’ve seen low volatility in recent weeks anyway.

I typically take time off this time of year to rest up and recharge for a fresh start in January.  This year, it’s just worked out that with a new baby our travel plans have differed than in years past.  As a result, I’ve maintained a more normal routine and now find myself trading in between Christmas and New Year’s for the first time in I’m not sure when.  I’m approaching it with a limited list of setups, smaller positions, and shortened timeframes, but if things don’t pick up considerably tomorrow then I’ll likely not put out a Thursday newsletter and will instead skip Friday’s action altogether.

For tomorrow, there are a handful of setups I think could offer some potential, so I’ll focus my efforts on them and otherwise look to lay low.  I’d like to see the overall volume improve, but as I noted above, we may have to wait until January arrives in order to get that.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: MGM, FCS, NAK, DHX, UA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

WFC, ALXN, MGM, SLW, MON, TCK, IR, FCS, AMP, JRCC, PEI, NAK, DHX, WBC, BKD, SEED, SRCL

Bearish Watch:

UA, BIDU, UAL, KMX, CMG, CSIQ, BVN, LXK, DRIV

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

It seems traders’ minds were elsewhere today as the first trading session after Christmas inspired no significant net changes in the indexes.  We saw a weak start followed by a choppy recovery, but momentum was absent, not unlike some traders in NYC I suppose with the blizzard up there.  Whether it was the lack of news flow or traders simply sitting on their hands, it was an extremely quiet session and the increased volume I was expecting to see this week has yet to arrive.

We’re still right between Christmas and New Year’s, and the bulls are still defending the market by not allowing any significant dips.  We still have year-end cross-currents in effect for these next few days, and so with the very light volume we’re seeing I feel it’s best to take a limited list of setups into tomorrow’s session.  Each of those, by the way, will be for day trades as I’m not looking to add any swing exposure here in the midst of this drifty price action.  Once the market starts showing better liquidity, I’ll likely start adding more overnight plays, but right now I’d rather take a few quick-hit trades and wait for better conditions for movement and activity.

By the way, I’m traveling at the moment to spend some time with family, which is why I’m utilizing the written format instead of the usual video in case you were wondering. Hopefully you’ve been able (or will soon be able) to spend some time with those you love the most this holiday season!

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday, and as you see I’m keeping it pretty light. If volume is able to kick back up tomorrow, I may consider some swings in the days to come, but at the moment I’m looking to day trade right now since it’s the holidays and we’re still seeing such light activity in the market.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays tomorrow. I will not be holding these overnight, and will wait for these levels to be crossed before entering trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Bullish Watch:

MGM, LVS, WFC, SLV, ATML, PCX, MON, APC, RVBD, TCK, FNSR, IR, CCJ, FCS, BYD, VMW, AMP, BMC, ALXN, BID, JRCC, PEI, WBC, NAK, DHX, SRCL, TRLG

Bearish Watch:

BVN, UA, KMX, TIE

The Hit List contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff