Good evening StockBandits!

Last week proved important for the bulls, in a couple of ways.  On a technical basis, we saw weakness on Monday mark a new pullback low from the early-July highs, only to see a late rebound erase some of those losses.  Then from Tuesday through Friday, stocks continued higher to help confirm the higher-low scenario we’ve been watching over the past couple of weeks.

On a psychological basis, the bulls know they have company after a move like this.  The rally off the June low was very momentum-based and included high emotions and ample short-covering.  That made it hard to determine just how much was actual accumulation, but now that we’ve seen the first dip get bought and some follow through, it’s a big boost for the bulls.  That could quite easily create additional confidence on subsequent pullbacks now that the May and June lows look likely to hold for at least awhile.

At this point, the indexes are facing some important tests on the upside in the near future if this strength continues.  We have the aforementioned early-July highs, followed by the May 2nd highs as potential resistance zones.  A breakout which is able to hold above those levels would open the door for considerable upside in this market between now and the end of the year, so it’s got explosive potential.  If instead those highs are able to hold, then there will be some short-selling opportunities back down toward lower levels within this very wide multi-month trading range.  My hunch is that this market is headed higher, as it has effectively shrugged off a variety of negative events and plenty of uncertainty in recent months.  Should the news flow actually turn positive, this big range could serve as a launch pad for another bull phase to kick in on the bigger picture.

We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade.  I like to check both EarningsWhispers and Yahoo Finance. No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.

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: HMY, CDE, SCCO, RGLD, SVM, SOHU, NTES, SLW, EXK, GG, RTI

Swing Trading Candidates:

NONE TONIGHT

[table “91” not found /]

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!

Last night I noted here that the minor pullbacks we had seen in Wednesday’s session appeared to merely be a day of rest for the indexes.  I pointed out the lack of importance for immediate follow through on the heels of Tuesday’s sharp rally, as it had given the market a bit of breathing room and allowed the bulls to catch their breath.

That opened the door for continuation to happen, and today we got it.  Each of the indexes rallied nicely with opening-hour surges higher, pushing further away from their July lows.  The DJIA challenged its July high, while the others gained ground for possible tests in the days ahead.

Perhaps the best aspect of today’s price action was the volume which accompanied it.  Not only was it above-average, but by comparison to yesterday’s pullback volume it confirmed what price has been telling us lately – that there’s more participation on the buy side.

Stocks continue to come under accumulation, despite the news flow and remaining uncertainty.  Earnings season may still hold some surprises, but all in all, the market has taken all the recent uncertainty in stride and has maintained the wide multi-month trading range.  As we edge back toward the upper end of that range and approach short-term resistance zones, we could see some bumps, but overall the buyers are still in control since reclaiming the steering wheel on Tuesday.

Tomorrow is a summer Friday, and once again we could see volume sag as traders head out to tend to other things or begin their weekend early.  The setups in which I’m most interested for tomorrow’s session are day trades. I’m holding 4 swing positions on the long side tonight, and don’t mind adding more when and if the right setups and risk/reward profiles come along. For tomorrow, I plan to focus on these names as day trades with 1% stops from entry and look to ride intraday momentum for 2-4% gains if they trigger entries.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “90” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Early optimism gave way to some quick profit-taking this morning as a gap higher on earnings news left the market a bit stretched to the upside.  The selling took the market negative, where it stayed for most of the session.

Yesterday’s breakout was important in that it broke the pullback phase we had been in since the early-July high was established.  The thrust of the move was enough to propel the NAZ and S&P 500 both well beyond the upper trend lines of the flag and pennant patterns they had been building, which was meaningful for today’s session.

To see a minor dip today after yesterday’s sizeable surge higher is actually a healthy way to digest the move.  Not much ground was given back, and yet immediate follow through wasn’t as imperative since we had cleared the trend lines by more than just a tiny amount.

Going forward, we will need to see follow through, and sooner rather than later would be ideal for the bullish case.  So while we didn’t get continuation higher today and positive news gave way to some selling, it was a minor dip and the bulls didn’t allow the market to give up a lot of ground.  I’ll be keeping a close eye on things in the next couple of days to see if these breakouts can hold, but I’m not alarmed by today’s quick and shallow retreat, as it really appears to have been a day of rest for the market.

We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade. Amateurs like to gamble on earnings outcomes, but professionals avoid that risk since it can’t be managed effectively. Keep that in mind these next few weeks! I like to check both EarningsWhispers and Yahoo Finance. No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.

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: NTES, VHC, ATI, MOBI, PANL, DANG, P, ANR

Swing Trading Candidates:

NONE TONIGHT

[table “89” not found /]

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!

Yesterday’s afternoon bounce from the lows of the session proved to be a turning point as stocks vaulted further away from their short-term lows in today’s session.  An opening gap to the upside was followed by plenty of additional strength, taking the indexes up through their descending trend lines on the daily charts.

This puts the market in an excellent position to rally further, but follow through will be the key.  Today’s spike higher was the kind of kick-start needed to break free of the short-term pullback phase we have spent the past several sessions inside of, but one day does not a trend make.  It may very well be day 1 of a new leg higher though, in which case the indexes would have ample room to run.  I’ve noted lately how the descending channels and falling wedges were creating bull flags and pennants, and today those patterns were confirmed on the indexes.  I’ll point out the next levels to keep an eye on down below in the charts.

In looking through many charts tonight, there are quite a few which look to be turning up from potential higher lows.  The June lows were not quite tested for many stocks, giving us potential higher lows with the July pullback and this subsequent turn back up.  Should this technical development be embraced going forward, we could see this market back up at the upper ends of the ranges in short order.

The setups in which I’m most interested for tomorrow’s session are day trades.  I’m holding 4 swing positions on the long side tonight, and don’t mind adding more, but with the setups which look ready for imminent moves from here, there were interfering earnings dates as well as risk/reward profiles which just didn’t look suitable for swings.  Instead, I’ll look to take them as day trades with 1% stops from entry and look to ride intraday momentum for 2-4% gains if they trigger tomorrow.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “88” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Continued concerns over debt issues both abroad and domestic prevented the buyers away this morning, leaving stocks with a downside gap to start the new week.  That was followed by additional selling pressure as the major averages slid to new pullback lows from their early-July highs.  Prices were able to stabilize somewhat mid-day, which caused some quiet buying in the afternoon.  It wasn’t much, but it did lift the market off its worst levels of the day, cutting the NAZ losses in half by the closing bell.

The news flow is combining with the technical pullback right now, and traders generally aren’t showing much confidence on the long side.  With economic uncertainties as well as it being right on the front end of earnings season (another uncertainty), everyone seems to be taking a lay-low-and-wait approach.  That’s not necessarily a bad thing, as it is a bit of a messy picture right now, but it’s making it more of a day trader’s market at the moment than anything else.  Once the dust settles a bit, we should see many more opportunities surface for multi-day plays.

Last night’s plays yielded few entries today as they were primarily long-sided candidates.  As such, it was a good reminder to wait for triggers before taking action.  Anticipatory plays occasionally have their place, but in foggy conditions they’re more of a gamble and a guess than a worthwhile strategy.  Keep that in mind as the market continues to grapple with headline risk and worry.  If there’s anything the market hates, it’s uncertainty.

Today’s decline did a little damage to some of the charts which were starting to build some bullish patterns (flags and pennants mostly), but there are still some trying to set up.  The key in gauging pullbacks is to see if the pace is accelerating or being maintained.  If it’s the latter, then descending trend lines remain valid.  If it’s the former, then the pattern is quite easily negated and therefore should be watched for a new setup.

There are only a handful of new setups tonight, but I’ll take them if they go tomorrow.  The Hit List still contains a couple of stocks which haven’t triggered as well, so they remain on my list for potential plays and I’ll take them if they cross the entry levels listed there.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups. As noted recently, I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “87” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A gap higher on Friday was met with some initial selling as stocks settled into a choppy range for the session.  Some level of strength was maintained though, and with a late push we saw the market go out within spitting distance of the day’s highs.

On the week, the NAZ and S&P 500 each gave up more than 2%, which was actually healthy from a technical standpoint.  The previous two weeks had seen nearly straight-up ramps which left the indexes very stretched to the upside.  The sharper a move gets, the more reversal-prone it becomes, so some profit-taking like we’ve seen actually opens the door for the market to possibly reset for another advance.

The biggest challenge of the past several weeks has been the erratic price moves and the effects that has had on the charts.  That has prevented individual stocks from setting up the kinds of bases and rest phases needed for swing trading setups, but now with some continuation patterns appearing in the form of flags and pennants, more potential plays are beginning to surface.

I’m encouraged by that, as it brings another timeframe into play rather than just day trades.  I don’t mind the cash-flow nature of day trades, but ideally like to have capital at work across multiple timeframes as a way to participate on more moves.  That also adds a layer of diversification for trading, so I’m hoping to see more swings going forward no matter which way the market heads.

We’re getting into earnings season and it’s time again for a reminder to check the earnings calendars daily for any multi-day trade.  Amateurs like to gamble on earnings outcomes, but professionals avoid that risk since it can’t be managed effectively.  Keep that in mind these next few weeks!  I like to check both EarningsWhispers and Yahoo Finance.  No matter where you look, just be sure to look and compare multiple sites to help confirm reporting dates.

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: TZOO, TSCO, P, HOG, GSVC, FIO, DE, WDC, WLP, PPO, CROX, CAM

Swing Trading Candidates:

PPO pulled back from its recent high on light volume, and now has a shot at a turn back up if it can clear the trend line.  I’ll be using that as a pivot for a buy, getting long if the stock clears $69.20 on the way back up.  Earnings are due out August 1st according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

CROX has pulled back quietly but held its uptrend quite well, and now could turn back up for another leg higher.  I’ll be going long this stock if it can cross the trend line with a push through $26.60.  Earnings are due out August 1st according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date.  As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

CAM broke through a multi-month downtrend line with good upside acceleration, and has pulled back quietly to digest that move.  It now looks ready for another push up, so I’ll be a buyer if this one can clear $50.75.  Earnings are due out July 28th according to Yahoo Finance, so I’ll look to be out of this trade ahead of that date.  I’ve set only 1 target for this play on the Hit List, but if earnings are approaching and the stock seems to be slowing down, I may look to make an exit prematurely (along with an intraday update via Twitter & email).  As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “86” not found /]

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!

An early upside pop gave way to a gradual slide lower today as the indexes surrendered their morning gains to ultimately post another decline.  By mid-day, each of the averages had moved into the red, and they never recovered.  In the end, the NAZ shed more than 1% while the S&P 500 gave up roughly half of that.

The bull flag-like patterns I outlined last night saw the upper ends get tested early in the session, but by day’s end it was the lower trend lines which were being threatened.  That puts the market in an interesting spot heading into tomorrow if these flags are going to be able to continue building.  With it being a summertime Friday as well as an option expiration day, anything’s possible.

If prices are able to stabilize soon, then some kind of a higher low would be formed as a result.  That would offer a potential secondary advance in the weeks ahead which might ultimately get the market out of its very wide multi-month trading range.  However, if that doesn’t happen we should still see opportunities for moves in both directions as the range boundaries are respected.

At this point, we’re in a short-term rest phase until further technical evidence suggests otherwise.  The recent sharp rally is being digested and we’re seeing some profit-taking, but the verdict is still out on whether or not this is yet another lasting reversal.  Volatility remains elevated, and we’re still seeing some wide-ranging days and frequent overnight gaps.  Rest has been extremely limited of late. For that reason, there still isn’t much to consider for multi-day trades at this point (since so few stocks have been able to base), although there is one candidate tonight which I’ll review shortly.  Otherwise, my focus for tomorrow will be on grabbing short-term moves.

Tonight I’m going with the written format as I know some of you enjoy being able to skim the setups.  The videos are not going away, but I will be utilizing more written newsletters to compliment the videos. My notes and trade levels are provided on the charts below.

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

Swing Trading Candidates:

MPEL remains in a solid uptrend but has put in some needed rest of late.  This has formed a very clean ascending triangle pattern, so I’m watching for a breakout to get long.  This stock has essentially ignored the broad market movement and continues to move to its own beat, which is why I don’t mind taking a breakout trade in the midst of what has been a range-bound market environment.

Chart courtesy of TeleChart

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. Please see the Day Trading Strategy for more details on how I manage these trades.

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

Chart courtesy of TeleChart

[table “85” not found /]

The Hit List will not be posted tonight as I am 100% cash overnight and there are no new swing trades for Tuesday. The Hit List typically contains stop and target levels for my swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Stocks got a jumpstart this morning with an upside gap, and whether it was accumulation or short-covering, we saw continuation higher into mid-day.  At its best levels, the DJIA was up over 165 points, while the NAZ had added 44.  The short-term oversold situation we discussed last night had given way to a bounce, but ultimately that’s all it was.

After settling into a high range, the buyers hit the pause button and the next thing they knew profit-taking had kicked in.  That gave way to a series of intraday lower highs and lower lows, producing an afternoon downtrend which partially filled the morning gap.  In the end, only minor gains were held.

In the after hours tonight, news has hit that ratings agency Moody’s has warned of downgrading U.S. government bonds, which in turn has sent the futures heading south.  Obviously, plenty of time remains until Thursday’s opening bell, but at the moment this market is poised for another potential gap lower at tomorrow’s open.  If there’s one thing that has remained constant in this market of late, it’s the fact that the market is highly sensitive to news right now.  From European concerns to domestic debt issues, there is no shortage of problems and relief headlines right now to cause knee-jerk reactions.  That’s making for some volatile times and sloppy charts, both of which make risk management a greater challenge.

One thing I’m encouraged by tonight is that quite a few stocks are beginning to build some bases.  I’ll walk you through them in the video to add them to your watch lists and learn what I’m watching for.  In terms of Thursday’s session, however, I’ll be a day trader as there simply aren’t appropriate charts at the moment for adding overnight exposure.  Soon that will change, but for now capital preservation is critical and there’s no reason to force trades in a shaky environment during the middle of summer.  There’s plenty of year left ahead of me to capture opportunities, and if my 11 years as a full-time trader has taught me anything, it is that those opportunities will come.

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: PLCE, SOHU, TZOO, PWRD, HFC, MPEL, LXK, CROX, REDF, MAKO, EZPW

Swing Trading Candidates:

NONE TONIGHT

[table “84” not found /]

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 flip-flopped around with only minor net changes for much of today’s session, with the main event being the 2pm ET release of the FOMC Minutes.  By seeing what was discussed at the last FOMC meeting, the market attempts to jump to conclusions about what may be next.  When it broke that there was some talk of a possible QE3, the market caught a bid and went positive.  However, the buying cooled off and the pullback from there became another downside reversal.  That left stocks limping once again across the finish line at the closing bell, ending right at their worst levels of the day.

We’ve now seen a 3-day pullback, and it’s been somewhat of a sharp one at that.  The NAZ has shed nearly 100 points since last Thursday’s high, which is certainly enough to have stripped the market of its overbought status.  We also saw volume pick up today, which may signal a bit of an exhaustion selloff.  Time will tell of course, but as I’ll point out in tonight’s video, the previous couple of volume spikes on distribution days were followed by bounces.  Stated otherwise, I’m leery of being caught short here given the downdraft of the past couple of days, and the impressive strength which preceded it.

In looking though hundreds of charts tonight, again I’m seeing plenty of sloppy price action.  The straight-up and straight-down moves of the past several days has allowed very few stocks to base out properly, which is to say about the only plays worth eyeing here are for potential turns after pullback have been completed.  That may require a bit more selling first, so as a result I’m taking a focused list into tomorrow’s session.

Capital preservation remains key right now for a few reasons.  First, it’s the middle of the summer, which is notorious for lighter volume (which we’ve been seeing).  Second, concerns out of Europe are still justified, and the market remains aware and sensitive to that development in this global economy.  And finally, the debt ceiling topic is still front and center, and the market will continue to fixate on it until that uncertainty passes one way or another.

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: WLT, HOG, RENN, GGC

Swing Trading Candidates:

NONE TONIGHT

[table “83” not found /]

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!

Following weekend concerns about the ongoing debt ceiling saga, and the fact that the indexes were still stretched after their early-July run, stocks sold off hard today.  A gap down this morning was met with additional selling pressure as dip-buyers shied away, handing the major averages their biggest loss since the June 1st decline.

Today’s slide doesn’t in itself threaten the technical health of this market, although it did serve as a good reminder that stocks do move in both directions.  After seeing Friday’s downside gap met with buying, the bulls took that minor dip in stride and likely expected to see something similar today.  However, a 30-minute bounce from the opening bell erased only a small portion of the opening gap and actually marked the highs of the session.  From there, it was nonstop distribution even though the pace of the selling slowed in the late afternoon.

Volatility continues to run high, despite a VIX reading in the teens.  We are still seeing more frequent overnight gaps, as well as wide-ranging days, reminding us to manage risk at all times.  Lately that has largely consisted of day trading (to avoid the gap risk), although even when swing trade candidates come along it’s imperative to protect the downside just in case.

As for where this selloff is taking the market, I do not know (or care).  As traders, we will continue to see opportunities so long as prices fluctuate, so the key here is to stay attentive and prepare for anything.  Clearly, this market is fixated on government actions both here and abroad, and until earnings season gets into full swing, that’s likely to remain the case.  I would expect this pullback to result in a higher low (relative to the June low), but there’s no reason to step in at arbitrary levels and just start buying.  The best bet is to let things stabilize and start to show signs of recovery before embracing the long side.  Until then, event risk remains high.

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: QIHU, RENN, EL, HFC, VIT, ATI, GGC, CREE

Swing Trading Candidates:

NONE TONIGHT

[table “82” not found /]

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