Good evening StockBandits!

A strong start this morning took the indexes beyond key levels, but only temporarily.  The NAZ broke 2237 for a little while, and the S&P 500 cleared 1107, but by the closing bell, those levels prevailed yet again as resistance.  This is a great example of a market that is respecting the technicals, and it’s a reminder of the importance of the closing levels.

It looks like this market is still consolidating beneath those key zones, which is entirely alright.  So long as not too much ground is given back, more rest might actually benefit this market for the next time an attempt is made to fill the August 11th gaps.  Today’s bar on the charts left many stocks with the look of failures from their short-term consolidations, so the wait continues for more conviction on the upside in terms of a secondary advance.

Tonight I’m away from my desk and running behind for personal reasons, so this will be an abbreviated Broadcast.  I’ll of course still outline my plays for Friday, but the index focus will be narrower than usual and I’m coming to you in written format vs. the usual video format – thank you for understanding!  With the market showing some short-term indecision here, and with it being a Friday, I’m going to stick with day trades rather than adding overnight exposure while stocks are generally basing.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major averages saw a minor lift today, turning higher after Tuesday’s pullback.  This back-and-forth price action might make conditions somewhat whippy for those looking under the microscope, but for the bigger picture, it’s very healthy.  It’s creating a short-term consolidation, which is a great way to digest the big move we saw last week without giving back much ground.

We’re still seeing this market respect technical levels, which is very encouraging.  Last night I pointed out 2237 as short-term resistance for the NAZ, and that exact level marked today’s high.  While it’s nice to be right, it’s even nicer to be trading in an environment where the technicals carry some validity.

From a momentum standpoint, the indexes look healthy as well.  The intense buying we saw last week led only to a 1-day pullback (yesterday), before buyers stepped back into the picture today.  That may point to a move through those key levels sooner rather than later, although a little more rest would be ideal to build a slightly larger base before a breakout is attempted.

Many more charts are setting up with tradable patterns, and another day or two would do wonders when it comes to helping those patterns mature.  We may not get it, but for Thursday there are still some setups of interest that I’ll be looking to participate in.

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: FOSL, VMW, AMZN, BXP, MA, XEC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

TSLA, FOSL, AEO, HGSI, RDC, CMG, AMZN, HCP, GILD, TKR, VMW, PANL, CRM, NR, SRCL, DPZ, LFL, BXP, BORN, SPRD, WLL, AUXL, AGCO, EJ

Bearish Watch:

MMR, DLB, LFG, ATHR, ECA, CBOE, XEC, CREE, CSTR, MA

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following last week’s ramp, a rest is a welcomed sight for many traders, and today we saw one begin.  Early weakness set the tone for the day as the indexes sagged early before spending the majority of the session in a choppy range.  Some afternoon weakness brought on new lows for the session, however, as the market went out on its lows.

Both bulls and bears alike can find appreciation for this dip, as it actually benefits them both.  Buyers can have another chance to put cash to work at lower levels, while those caught short last week found a little relief today.

From a technical perspective, this is also good to see for a couple of reasons.  First, it helps to prevent the market from becoming too overbought in the near term.  Anytime the market becomes too stretched in any single direction, a hard reversal becomes more likely.  Second, with key resistance levels looming just overhead, a little time to digest last week’s move will allow some basing action ahead of a breakout attempt (if one occurs).  That may help to prevent a false breakout from an overbought market which pushes just beyond resistance, only to see profit-taking kick in.  By resting ahead of a breakout attempt, stocks might be able to gather momentum rather than lose it.

Tonight there are many stocks which still need more rest and basing action before tradable patterns will emerge, and that’s alright.  My watch list is limited for that reason, but I do expect that to change in the days ahead.  There are still some setups I like for Wednesday, however.

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: CAGC, GDX, FOSL, CMG, LULU, BVN, EGO, DLB, RIMM, LFC, ECA

Swing Trading Candidates:

ECA remains in a downtrend and here it is turning lower once again after a rising trend line got broken today with expanding volume.  I like the risk/reward here for a short sale, so I’ll be using $28.10 as my trigger price for an entry (a few cents beneath today’s low).  As with all swing trades, my stop and target levels will be on the Hit List.

Chart courtesy of StockFinder

Bullish Watch:

CAGC, ARNA, GDX, FOSL, BVN, EGO, JKS, CMG

Bearish Watch:

CRK, DLB, STRA, RIMM, LFC, LULU, BEC, ASIA, LNCR, ECA

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Ahead of a long holiday weekend, the buyers showed no hesitation in putting capital to work last week.  Recent tests of key support levels such as 2100 on the NAZ and 1040 on the S&P 500 apparently inspired the bulls, and they responded by defending those zones.  By the end of the week, the indexes were left within spitting distance of key resistance zones.

Perhaps the most important element to last week’s rally is the possible creation of higher intermediate-term lows.  That’s been a possibility I’ve discussed here multiple times since the July rally began, noting that a pullback which stops shy of those lows could evolve into a bullish technical event.  At this point we’ve gotten the pullback, it did stop short, and we’re now turning sharply higher.  More technical proof will be needed to truly confirm the August lows as a higher low (like clearing the August highs), but for now that scenario is very much in play.  As a result, we could see dips get bought going forward.

I went through many charts this weekend in search of setups, but more time is truly needed here to allow not only this market, but individual stocks alike to rest up and digest the move from last week.  It was a big move, and that means some consolidation is needed.  I don’t want to chase here, as the easy money has most likely been made on this initial move off support, but we could still see secondary advances in the days ahead.  Therefore, we need to wait for bases to form in order to allow that secondary move to begin.  That leaves me eyeing short timeframes for Tuesday’s session, although a little rest in the next couple of days could go a long way for this market (and the bulls).

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: JKS, FFIV, GDX, FOSL, IVN, CNW, STRA, RIMM, CAGC, VMED, CECO, DLB, LFC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FFIV, VMED, ARUN, MMR, TSLA, CAGC, ARNA, GDX, AEO, HOGS, FOSL, EXXI, HGSI, CECO, IVN, DV

Bearish Watch:

CRK, CNW, ESRX, DLB, STRA, RIMM, LFC

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

After a huge move Wednesday which cleared important levels, the bulls could have taken the day off today.  Instead, they held their ground throughout the day, giving back nothing and finishing strong to post another nice advance.  And although today’s move paled in comparison to yesterday’s, it was no less important with the follow through it provided.

The indexes are now pushing toward resistance areas which could offer important tests, such as 2236 on the NAZ (the low end of an unfilled gap), and 1100 for the S&P 500.  It could be that we rally right up to those zones before a rest is seen, and there’d be no harm in that.  There is plenty of overhead this market will be facing in the coming weeks if this rally is able to stick, so we can expect there to be some phases of consolidation and rest along the way.  At the moment though, the buyers have some momentum.

Tomorrow is of course Friday, but it’s no ordinary Friday.  Not only is it considered by many to be the last summertime Friday (for trading purposes), but it’s also the last day of trading before a 3-day weekend with the market being closed Monday for Labor Day.  So as the afternoon approaches, keep in mind that many traders will be looking to step away early, and if the market feels drifty, don’t force any trades.  With all eyes on the nonfarm payrolls report in the premarket, we could see a substantial opening gap in either direction, depending upon how that news is received.

It’s a good time for caution, so think before chasing stocks after the move of the past two sessions.  A little rest would be ideal, so if tomorrow marks the beginning of a brief pause, embrace it and do as little as possible.

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: ESI, ARNA, FTI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

APOL, ESI, DV, CROX, JKS, APKT, RVBD, AEO, TSLA, ARNA, FFIV, FTI, SWC, RAX

Bearish Watch:

CREE, ESRX, GS, COG

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Strength in overseas markets set the early tone today as futures pointed to a gap up open.  That was soon followed by another upside jolt for the market when favorable economic data was released, taking the market to its highs shortly after.  From there, things leveled out as the market remained juiced after reclaiming some very key levels.  In the end, it was a huge start for the new month, despite the weak historic seasonality of September.

At this point, the bulls need to maintain what they achieved today.  They can do that by either adding to today’s gains in the near term, or by simply showing up on the dips so that the recent lows are able to hold.  That would help to confirm higher intermediate term lows (compared to the July lows), and would be a very bullish development for this market as the year progresses.

As traders, it’s easy to want to rush out tomorrow and buy everything in sight, but this isn’t a buy-your-initials kind of market.  Momentum has been fleeting thus far in 2010, and that’s worth respecting until it changes.  The more prudent move for tomorrow is to take what the charts are offering, and tonight that actually isn’t a lot.  Many charts had been creating bearish patterns, but today’s move negated most of those bearish consolidations.  We now need to allow more setups to emerge, and not become over-anxious in the meantime.

Looking slightly farther out on the horizon, I do think it’s worth noting that as the year end gets closer, performance anxiety could really play a big role in this market – particularly if it catches a bid.  Fund managers won’t want to be left behind if this market gains traction, so let’s keep that in the back of our minds going forward.  It just might be that we’ve seen the lows for the year.  That’s no prediction, just an observation with the higher low now becoming a bit more of a reality after today.

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: TSLA, FFIV, FTI, SWC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DPZ, RIG, NFLX, DV, CROX, AUXL, EBAY, RVBD, INTU, TSLA, FOSL, MMR, NTES, MCP, SYMC, VCI, ARCC, CMG, FFIV, FTI, SWC, FAS, UYG, XLF

Bearish Watch:

None tonight

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

As is sometimes the case, today’s closing numbers don’t tell the whole story.  On the surface, it looks like a flat, uneventful day.  And on a net change basis, I suppose it was.  However, there was some meaningful action taking place between the bells, making for a productive session – particularly for the bulls.

Technically, this market is still struggling, which means the bulls are too.  But they had a chance to really let go today and didn’t.  We came right do the key levels I’ve been pointing out, including right here last night, with the S&P 500 tagging 1040 and the NAZ testing 2100 before bounces kicked in.  Those are the low ends of the short-term consolidation areas, which if broken, could bring a quick retreat to the July lows.  Instead, the buyers defended those levels for another day.  I doubt the bulls are resting easily here given they don’t have much breathing room, but they’re still present and that’s certainly worth noting.

With the indexes still currently range-bound, and with few charts poised for moves, my list for Wednesday is rather limited.  As the Labor Day long holiday weekend approaches, I’m expecting volume to remain light, and as a result I’m looking to keep my activity limited until this market proves it’s back on the move.

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: MMR, ISLN, ARCC, DO, PDCO

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CF, NFLX, APKT, MMR, INTU, ISLN, VMED, ARCC

Bearish Watch:

TIF, CRUS, ATK, LLL, CSC, JEC, MMM, V, SYK, NILE, URS, ZMH, PH, CNX, LM, APC, DO, COG, PDCO, ISRG, MAN

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A test of the upside this morning was short-lived as Friday’s rally failed to find follow through.  Instead, the market gave back essentially all that was gained on Friday, and we now stand right near Thursday’s closing levels.  Pretty quick for a round-trip.

Such is the nature of trading ranges though.  We spent another day in the narrow consolidation zone which emerged last week, with short-term resistance levels (which were former support areas) holding once again.  Our attention now turns to short-term support levels which aren’t far below, such as 2100 on the NAZ and 1040 for the S&P 500.  A breakdown there and a close beneath those areas would likely spark additional selling to test the July lows in short order, so the next few days will be important for the bulls, to say the least.

The one thing today’s action had going for it was the incredibly light volume we saw.  Of course, this is the last week of trading ahead of Labor Day, which comes next Monday with the market being closed.  That’s historically the trader’s cutoff for summer, as volume tends to improve after that holiday with fall fast approaching.  So, it could be that traders are using this week to tend to other matters, like vacations to rest up ahead of the year-end push.  Time will tell, but although today’s slide kept the bulls’ confidence in check, technically they can feel slightly better about the lack of downside volume it came with.

We are getting some good back-and-forth action here, which means there’s a pretty significant tug-of-war going on.  Once we see a resolution to this short-term indecision, it could lead to a nice move.  For that reason, I’m considering plays on both sides of the market tomorrow, while for the most part keeping my timeframes rather brief due to the lack of overall volume.

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: NFLX, VCI, TSLA, ESI, PAY, EEV, APC, IOC, SEIC, ZMH

Swing Trading Candidates:

ZMH continues to slide without being able to stabilize or bounce for more than a couple of days.  Here it’s sitting in a bearish wedge, which if resolved to the downside, could spark another wave of selling.  I’m looking to short this stock if the lower trend line at $47.30 is broken.  As with all swing trades, I’ll have my stop and target levels on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

RIG, APOL, ESI, NFLX, TSLA, MCP, VMED, PAY, VCI, EEV

Bearish Watch:

BEN, HRC, ZION, IOC, ATK, LLL, MMM, V, SPN, MELI, CRL, LAZ, ZMH, MLM, PH, OSG, CNX, PRU, LM, SEIC, APC

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Friday morning brought with it some lively action as right from the open stocks began to suffer.  The selling accelerated ahead of Bernanke’s speech, thanks largely due to a halt in INTC after they guided lower.  Once a bounce finally arrived, it marked the low of the session as a huge V-shaped recovery set in.  That carried stocks well into the green in short order, where they remained for the rest of the day.

The major indexes are now once again testing former support levels (which are now serving as resistance) from beneath.  To see a continued bounce from here would mean those levels get reclaimed, which would be positive on a technical basis.  In addition, last week’s downside helped to validate key levels of support, such as NAZ 2100 and S&P 500 1040, so we’ll be able to keep those pivots on the radar going forward as well.

For the week ahead, things could remain tricky.  We have a slew of economic data on the docket, and a long weekend to follow (with the market being closed for the Labor Day holiday on Monday, September 6th).  That gives us ample reason to stay on our toes, so it’s a time to keep stops in place and remain selective with new trades.

In looking through a ton of charts this weekend, I found a pretty mixed bag out there.  Some stocks are acting well, while others are still in poor technical condition but attempting to bounce or stabilize.  Those charts in particular will need more time to set up potential plays, but there are a handful of names I’ll be focused on for Monday.

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: PWRD, NFLX, JKS, AEO, MCP, ISLN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RINO, NFLX, IT, JKS, AUXL, MMYT, DRQ, AEO, PWRD, INTU, MCP, SYMC, AKAM, INFA, ISLN

Bearish Watch:

CBOE, LLL, DGX, RIMM, CRL

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Yesterday’s bounce carried over into this morning as the market lifted higher in the early going.  However, the strength was short-lived, and it wasn’t long before it was completely given back.  The indexes trended lower intraday from there, finishing near their worst levels of the day and back below Tuesday’s closing levels.

Today had been shaping up to be a potentially pivotal day, as a continued bounce would have offered further hope of a higher intermediate-term low.  Instead, the daily charts of the indexes now have a consolidation appearance following a selloff, which could quite easily bring downside continuation if the lows of the week are penetrated.

All eyes will turn to the July lows if we see this consolidation resolved to the downside.  I would expect to see some acceleration in the selling pressure if that occurs, which means the technical picture faces further deterioration in the short term.

With tomorrow being a late-summer Friday, as well as the fact that we have the GDP number in the pre-market, consumer sentiment shortly after the bell, and FOMC Chief Bernanke speaking at 10 ET, the market should have a lot to digest ahead of the weekend.  Stated otherwise, anything is possible.  As a result, I’ll be focused on just a handful of day trade candidates, waiting for more charts to set up for swing trades in the coming days.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Friday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

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 StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

VIT, MAC, CF, NFLX, SLW, IT, MMYT, TSLA, FOSL, PWRD, INTU

Bearish Watch:

LNCR, DGX, MLM, ISRG, RIMM, CBOE, DLB, LLL, MON, V, CRL, VSEA

The Hit List post will follow shortly with my trade levels for the swing trades.

Trade Like A Bandit!

Jeff