Good evening StockBandits!

Some back-and-forth price action today meant no lasting momentum, and ultimately left the major averages little-changed from Wednesday’s closing levels.  The NAZ was up fractionally, the S&P down fractionally, and it seems traders are on hold waiting for tomorrow’s employment data in the pre-market.

That’s been a big focal point for some time now, as everyone knows jobs are needed for a lasting recovery.  As is always the case though, it’s not necessarily the data that matters so much as it is how the market responds to it.  So, if the number is way out of line, expect a sizeable gap to start the day.

The overall market seems to be stalling out here though, and if that happens to get resolved to the downside, it won’t necessarily be a bad thing.  We’ve not seen any meaningful profit-taking since August, and that would certainly help to shake up the charts of individual stocks and help create some new bases from which new trades can be placed.  So the big picture seems to be stagnating just a bit here, and we’re also coming into earnings season again.  That’s going to keep things a bit tricky, so we’ll stay on our toes and avoid forcing trades for as long as this indecisiveness remains present.

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: CSIQ, SNIC, CHKP, VMC, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MMR, FOSL, GILD, BORN, MHK, MAN, TRW, DISCA, CSIQ, ALGN, SNIC, YGE, BKD, COST, ALTR, A, DRIV, CHKP

Bearish Watch:

LLL, GMCR, THOR, SLAB, V, VMC, BBT, WMS, CF, SLXP, EDU

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 major averages finished mixed today as the NAZ sold off, the S&P finished flat, and the DJIA upticked slightly.  The only momentum seen in the overall market was some mid-day selling, but even that was once again met with some dip-buying which provided a minor afternoon lift.

The real headliners today were the recent momentum stocks which got slammed such as AKAM, VMW, CRM, FFIV, VHC and CTXS.  Interestingly, those have been among the market leaders of late which have seen every dip get bought.  Today however, the selling was relentless, and that’s notable.  To see the high flyers take a big beating on heavy volume is something to pay attention to.  It won’t necessarily lead the market into a pullback if other leadership emerges, but it will give the momentum players something to ponder the next time we see more than a hint of red hit the tape.

In addition to those stocks coming under fire, I saw quite a few others which looked to be entering into rest phases with today’s bars on the charts.  That’s positive for the creation of bases and patterns from which to trade, but it might mean less action for a day or two until some of those patterns are able to mature.  Patience in trading involves waiting for those patterns to get set up properly, so let’s keep that in mind over the next couple of days.

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: BORN, ATLS, ATW, GMCR, THOR, SLAB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DV, BORN, IVN, MAN, ATPG, TRE, GPS, ATLS, TIE, LUK, ATW, YGE, AA

Bearish Watch:

GMCR, ADBE, THOR, BKE, SAFM, LLL, AGCO, SLAB

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 multi-day pullback left the indexes sending mixed signals last night as the NAZ broke a rising trend line while the S&P 500 held short-term support at 1130.  I mentioned my hesitation in jumping to conclusions, at least until we saw the indexes moving more in tandem, and today that’s exactly what happened.

Right out of the gate, the buyers embraced stocks with an opening gap which never attempted to fill.  Instead, cash was put to work and stocks moved steadily higher into mid-day, where they leveled off for the remainder of the session.  The indexes went out only a short distance from their intraday highs, sending a unified signal yet again that the trend remains up.

The difficulty at this point for a disciplined trader is what to do next.  Aside from having seen the market make a huge run over the past few weeks with hardly a rest, we’re now coming into some significant overhead resistance zones which could quite easily diminish the intensity of this rally.  At the same time, we’ve yet to see any technical change of trend, so there’s no reason to be overly bearish.

The best way to handle this dilemma right now is to exercise patience, take only the best setups, and keep stops in place at all times.  Walking the high wire here is the only way to attempt to participate, yet as traders we aren’t forced to do that.  Throwing caution to the wind and chasing an extended market is a recipe for pain once the momentum train slows down – and it will.  So in the meantime, I’m planning to locate high-quality setups for short-term trades, and will keep a stop in place at all times should things happen to reverse.

After today’s breakout, there’s no shortage of names which are in uptrends.  And while many simply lack the patterns I prefer to trade from, there are some which are on my radar for Wednesday.

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:  MMR, BORN, SOL, SGY, RHT, MTL, ROVI, ATPG

Swing Trading Candidates:

ATPG has been grinding higher in recent weeks, and right here looks to be stabilizing after a minor pullback within the uptrend.  A move up through the trend line at $13.75 will trigger a buy for me as this one gets back on the move.  As with all swing trades, my stop and target levels for this one will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

MMR, IVN, BORN, RRC, GDP, SGY, RAX, RHT, HMIN, TIE, MEE, ARBA, MYGN, CIB, PHH, ROVI, SOL, CMI, MTL, ATPG, NANO, GPS, HAR, TRE, LLNW, SNIC, OCLR

Bearish Watch:

EJ, ADBE, BIG, BKE, SWN

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!

Thursday’s failure to hold new highs when reached last week left traders with something to ponder over the weekend, and it wasn’t long today before some selling kicked in.  Once the indexes moved into the red, they stayed there for the remainder of the session.  Although some support was found after the morning selling, the lift from the lows into the afternoon was very minor.  That raises the question of the whereabouts of the dip-buyers who have been so prevalent in this market lately.

One day of downside doesn’t seal the fate of the market, although there are certainly some reasons here for caution.  Aside from last week’s failure to hold short-term breakouts to new highs, we have the NAZ breaking a 3-week uptrend line today and the RUT falling back beneath 670.  The S&P 500 did hold the 1130 zone where it recently broke out, but all in all, we saw some selling today that could test the bulls in the near term.

Should this pullback happen to get deeper in the coming days, that wouldn’t be unhealthy to see.  Pullbacks and rest phases actually help to perpetuate uptrends, as they help prevent advances from getting too stretched.  The steeper a move tends to be, the more easily it can simply reverse.  So, ideal uptrends are in fact accompanied by some dips along the way, and even the bulls realize that in the current environment.

For now, a pullback is getting underway but we lack clear signals that the selling is intensifying.  Heading into Tuesday, I’m planning to stick with shortened timeframes for new trades while waiting further technical clues.

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: VXX, CAGC, FTNT, MON, APA, ENER

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

EQR, VXX, NTES, RES, LVS, FTNT, MIPS, ARBA, MAR, MYGN, EBIX, CAGC, HOG

Bearish Watch:

CRK, MON, CSX, ADBE, BIG, NE, SWN, NYX, RTN, PXD, ENR, APA, LLL, PNC, ACM

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!

With a 3-quarter streak of positive starts to new quarters in 2010, as well as plenty of recent strength, the bulls had a reputation to protect on Friday.  Technically, they produced another gain, albeit a slight one, to kick off the 4th quarter.

The early action was where the strength was, as I mentioned Thursday evening here, but from there the buyers failed to build on early momentum.  Stocks soon gave up their gains, slipped into negative territory, then stayed range-bound for the remainder of the session.  By the closing bell, incremental gains had been posted, but Thursday’s highs stayed intact.  More importantly, the S&P 500 failed for the second straight session to close above 1150 after crossing it intraday.

So, we’re still in the same spot, both literally and figuratively.  The indexes are holding their ground in short-term trading ranges, sitting above former resistance zones and below the mid-May bounce highs.  The buyers continue to defend their ground, stepping in quickly to provide support on dips, and that’s preventing pullbacks from gathering any steam.

Although every day of rest right now counts, a more prolonged basing period or even some more intense profit-taking would do wonders for the longer-term health of the market.  A shakeout from here would help to mix up the charts a bit, and would offer another opportunity for buyers to get involved at lower prices.  Many are simply unwilling to chase prices here after seeing a near-straight-up run over the past month.  At some point we will see more selling, but for now, the uptrends are still firmly in place.

Stocks are starting to see a little bit of rest, and some patterns are emerging, but more basing action would be best at this point in most cases.

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: MCP, LVS, SKX, BKE, FLIR, TIE

Swing Trading Candidates:

TIE just established a higher low on the daily chart and then advanced nicely.  In recent days, it has consolidated just beneath short-term resistance.  A move up through $20.55 will trigger a buy for me, and as with all day trades, my stop and target levels will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

TIE, JKS, PANL, MCP, RYL, VXX, GOLD, GOL, PRGO, VIT, GDP, MTG, SID, LCAPA, EMR, ALGN, RAX, LVS, FTNT, MIPS, INFN

Bearish Watch:

MON, SKX, BKE, DRI, X, VECO, FLIR, RTN

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 3rd quarter began with the major indexes marking a lasting low, and it’s possible the quarter ended with a short-term high in place as well.  Today’s push to new highs was followed by a substantial reversal, and regardless of the cause, we saw some profit-taking kick in.

The market was able to rally from its worst levels of the day, which is yet another reminder of the presence of dip-buyers right now, as well as perhaps some expectation for an up day tomorrow (with it being the first day of a new quarter – more on that shortly).  However, the finish in the red after marking new highs is a signal to many that some caution here is warranted.  It appears, at least for now, that the indexes need a little more rest before making another push higher.  If anything, today’s turnaround to the downside planted the seed of uncertainty – even if it needs more time to grow.

While I’m not a bear, and don’t care about market direction for that matter, a rest here would certainly benefit this market.  It would allow the rally to possibly put together another leg up (once some rest is seen), and would also enable individual charts to form new bases from which new trades can be placed.  We’ve seen short-term opportunities lately, but for the multi-day or swing timeframe, good setups with defined risk have been few and far between.  Perhaps if a pullback were to kick in, it would shake up the charts a bit in a good way.

Tomorrow marks the start of Q4, and so far we’ve seen positive starts to each quarter this year.  That may influence how stocks start out tomorrow, but as usual, it will be the finish that matters most.

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: VXX, REE, VECO, BAC, NYX, RYL

Swing Trading Candidates:

RYL trended steadily lower from its April peak into June, but since then has leveled out and now is trying to turn back up.  A push up through resistance at $18.15 could put this one back on the move higher, so I’ll be a buyer there.  As with all swing trades, my stop and target levels will be posted on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

CRK, CSTR, RYL, VXX, REE, PVH, WPRT, KG, WCRX, RAX, VMED, RHT, LVS

Bearish Watch:

MON, YHOO, AMAG, DRI, WFC, MET, VECO, BAC, NYX

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 continues to hold up, despite having run a very long way over the past few weeks.  The August lows are a distant memory at this point, we’ve hardly seen any selling, and yet stocks refuse to move lower.

That’s largely due to the presence of dip-buyers, whether they be shorts who desperately need out of losing positions and quickly buy to cover on virtually any weakness, or bulls who feel left behind by this rally and are eager to hop on board at the first sign of lower prices.  Either way, the dips have been shallow and short-lived, and until that changes, it’s still a bull market in the near term.

The trouble here for active traders is that quality bases are very hard to come by.  So little rest and virtually no downside lately have combined to leave many charts with the look of a one-way rally.  That creates the dilemma of “it’s too early to short and too late to buy.”  The continuation of this rally is increasing that frustration among traders on both sides of the tape, but it’s just part of the game.

My response to it is to simply reduce holding timeframes until better, more mature patterns emerge – and they will.  In the meantime, there are some opportunities to participate, but it’s still a difficult spot to buy aggressively.  Even a basic strategy like going long on new highs comes with a caveat, as it’s just not easy right now to determine well-defined, chart-based exits.

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: DOV, PVH, ALGN, STT, WFC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FFIV, CRK, JKS, LAZ, CSTR, IPI, SANM, LEAP, VPRT, NFLX, STP, TDC, MASI, LZB, MTG, SOLF, CSIQ, YGE, PVH, SPWRA, CAT, ETN, WFT, EMR, ALGN, DOV

Bearish Watch:

SKX, SAFM, AMAG, WFC, DRI, GNW, STT

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 opening 40 minutes today was filled with selling as the major averages moved into negative territory with some decent velocity.  The initial bounce turned into a reversal though, and the lows of the day were established.  From there, a steady rebound took the indexes into positive territory, and despite some back-and-forth action in the afternoon, that’s where the market finished.

Last night here I mentioned the presence of dip-buyers and how that’s the key to this market, and today we saw them step in again and get paid for doing so.  Until that dynamic changes, we can expect the bulls to maintain a bid beneath this market.  It may end up taking more than one selloff before they walk away, too, as they’ve had big recent success with aggressive buying.

More basing action would still be very helpful to the charts of most individual stocks, as we have only small bases out there for the most part.  For that reason, I’m eyeing some day trades for Wednesday in order to participate in the market movement while still appropriately managing my risk.

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: SOLF, CSIQ, YGE, SNDK, GS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ATHR, LAZ, TKR, PANL, PHM, RYL, RRC, NFLX, MAN, DGX, BLK, SMT, TDC, N, MASI, SOLF, LEN, CSIQ, PVH, DHI, VECO, ULTA, YGE

Bearish Watch:

JKS, ADBE, SNDK, AMAG, DRI, WFC, GS

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 weekend apparently left the bulls feeling the need for a rest, because they took one today.  After spending only a brief time in positive territory, some afternoon selling ultimately made the difference as the indexes finished slightly negative on the day.

Only a portion of Friday’s gains was given back today, which is positive.  Some additional basing action and perhaps even a deeper pullback would still be fine for this market, and would not threaten the uptrends which have emerged over the past few weeks.  The intermediate-term situation of a higher high and higher low is still a big positive for this market, so we’ll keep that in mind even if we see more selling emerge.

Right now, there are quite a few individual charts which are bullish, although more rest is needed for the majority of them.  We’ve come a long way in a short period of time, and a single day of minor downside does little to change that.  The dip-buyers are still out there though, so let’s see how intent they are in the next couple of sessions to avoid letting prices slip.  That should give us a better gauge of what to expect from this dip.

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: DLB, CNX, SWN, ALXN, VPRT, LEN, SOLF, VMC, JPM, GS, DRI

Swing Trading Candidates:

DRI turned lower recently and has struggled to bounce.  Here it looks vulnerable to another turn lower, so I’m eyeing it for a short sale.  A break of the rising trend line at $43.20 will trigger an entry for me as this one starts another leg down.  My stop and target levels for this swing trade will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

USG, DLB, DO, SANM, VPRT, NTES, SMT, N, ALXN, WCC, SINA, GDP, LCAPA, SID, SOLF, LEN, DISCA

Bearish Watch:

X, MET, MON, CREE, CNX, SAFM, VMC, SNDK, JPM, BKE, WFC, DRI, SWN, UPL, GS, MET

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 week started out with a Monday rip to new highs, adding to the prior Friday’s minor breakout and clearing the June highs.  That confirmed a higher high and a higher low in the intermediate term, but it did leave the market quite stretched to the upside after the run which began Sept. 1st.  We drifted only slightly lower for the next 3 sessions, only to gap big on Friday and go out near the highs of the day to mark new recovery highs.

To see a market run with momentum isn’t much different than an individual stock, as there are traders on the right side who don’t want to let go and traders who are trapped and must exit at bad levels.  Right now, anyone short this market is feeling the pain, and those who are long know it.  That means the dips are extremely shallow and short-lived at the moment, which is keeping the accelerator on the floor.

We’ve come a very long way in a very short time, and although a rest would be quite healthy, there’s still no sign of one yet.  Underperformance is a major factor in the market for those who manage funds, so when the market takes off, underinvested money managers are forced to chase in hopes of making up for lagging performance.  That’s a big reason right now we’re seeing relentless buying, especially as the end of Q3 arrives this week.  And as the calendar progresses, the year-end could quite easily spur this same performance anxiety.

There are a number of good reasons for this bullish move.  A potential higher low was established in August, and with key support zones holding, the buyers have piled on to build this momentum.  We also have the catch-22 situation of either an improving economy or a Fed which is willing to add further aid, which is a win/win for the bulls.  The only problem is finding a spot to jump on board without being among the last to buy into this phase of the rally.

I’m not inclined to chase here, as there are a ton of individual stocks which are bullish yet very extended.  That’s a highwire-type scenario, and it’s just incredibly likely the easy money has long since been made for this particular run.  Waiting for a pullback or a rest is far better in terms of managing risk, and one of those two will arrive, allowing new setups to build and stocks to somewhat reset for a possible second run.

In the meantime, the NAZ is working on filling a gap from mid-May as each of the indexes start to approach areas of overhead congestion, so this is a time where exercising some caution is certainly warranted.  Abbreviated timeframes for new trades is best, at least until some basing action is seen.  Getting left behind and facing the feelings of being underinvested in a runaway market is never fun, but chasing overextended stocks after a major lift often proves to be costly, and that’s even worse.

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: GDP, FORM, MASI, MMR, SNDK, JKS, IMAX

Swing Trading Candidates:

IMAX recently cleared an important trend line with a solid multi-day advance, and since then has put in some needed rest on light volume.  This one looks set to make another move higher if it can clear $17.20, so I’ll be a buyer there if it gets on the move.  My stop and target levels for this swing trade are on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

GDP, PVA, MMR, LAZ, SPRD, AGCO, DO, SHLD, TTM, IPI, RIG, RRC, BIG, FORM, EXXI, STP, IMAX, GSM, XRTX, TDC, VCLK, TRW, N, DE, MASI, ALXN, WCC, NTGR, AXP, SINA

Bearish Watch:

EGO, JKS, SKX, SAFM, VMC, SNDK

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