Good evening StockBandits!

The indexes got off to a poor start today with some early weakness, but buyers emerged as the S&P 500 tested the 1040 level I pointed out here last night.  The NAZ also found support at the 2100 area listed here last night, as did the RUT near 587.  Clearly, we aren’t the only ones watching those levels, and today’s respect of those areas adds validity to them.

Today’s weak start and finish in the green – even if it wasn’t a big advance – signals short-term fatigue for the pullback which started last week.  How far a bounce carries remains to be seen, but in the short term, I’m still expecting the bounce to at least fill Tuesday’s gap (as mentioned here last night).  That would mean a test of the broken support zones from beneath, and would give us a very good idea for whether the upside has any staying power.

It is still a time to remain vigilant and cautious, as anything’s possible.  We could see things weaken again in a hurry, and find ourselves facing the July lows in short order.  On the other hand, if today’s low is able to hold, it could eventually prove to be an intermediate-term higher low (relative to the July low), which would be a very positive technical event for this market.  More time will be needed before we know for sure, but if anything it adds importance to the next few days and weeks of action – even if it’s historically a “slow” time for the market ahead of Labor Day.

I’m looking to maintain high levels of cash for now, focusing primarily on intraday trades with some occasional overnight positions (adding one candidate tonight).  The market’s been weak, but it’s starting to bounce, so my watch lists are rather thin at this point.  It’s a bit late to be shorting for this particular move, and yet there are very few stocks exhibiting bullish price patterns.

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

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:

INTU jumped higher last week and has pulled back quietly over the past few sessions with declining volume.  The breakaway gap has been able to hold on the dip, and this one could regain momentum quickly if it’s able to turn higher from here.  I’m watching for a push beyond the trend line at $42.90 to trigger a buy, and will have my stop and target levels on the Hit List for this swing trade.

Chart courtesy of StockFinder

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

Bullish Watch:

RINO, WLP, NFLX, SLW, IT, AEO, TSLA, FRG, FOSL, CRM, PWRD, GG, LAZ, ANV, INTU

Bearish Watch:

LLL

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A gap down open this morning set the tone for the day, and although an attempt at a recovery was staged, it was unsuccessful.  Last night, we saw the indexes resting on short-term support and threatening to break down.  Today, the existing home sales number in the premarket left traders more interested in raising cash than putting it to work.  As a result, we saw a breakdown and a triple-digit decline as the major indexes reached their lowest levels since early July.

At this point, the July lows are the last line in the sand as potential support for this market.  The rally up from those levels was sizeable, and it appeared as though a pullback from the August highs could realistically result in a higher relative low for the intermediate term.  That possibility still exists, but the buyers have yet to step in.  If and when those levels are neared again, we can consider some scenarios which might play out.  For now, the short-term trend is down and that means caution and cash are two good things to have.

Sifting through the charts tonight, it’s easy to see that many have already broken down along with the overall market.  There is some room before the next technical support is seen, so things could certainly continue to slide.  However, on the heels of a 105-point decline in the NAZ in just 4 sessions, I’m inclined to hunt for some long-sided candidates for tomorrow.  There are a few out there I’m eyeing, but if the weakness persists, I’ll stick with existing shorts and the Bearish Watch List down below.

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

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

Bullish Watch:

CMS, MMYT, FOSL, CRM, MMR, NTES, TSL

Bearish Watch:

WHR, WDC, CBOE, LLL, MON, NAV, CECO, CRL, PLCM, CREE, GRMN, FAST, OII, ESRX

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes came under some pressure again today as early strength was entirely erased by mid-morning.  Stocks sold off their morning highs, stabilized midway through the session to hover around the flat line, then rolled over once more in the final hour to reach new session lows.  Volume remained light, but the indexes marked new pullback lows on a closing basis and are threatening to undercut short-term support.

It could be that we see those support zones get defended, but that’s not a bet I’m willing to make.  What we have are broken uptrend lines from 2 weeks ago, a solid decline, and some basing action since then.  Even though the trading range of the past 8-9 sessions has been rather wide, the fact remains that this is a consolidation following a momentum move, and that could easily spell downward continuation for this market.

We’re in the late stages of summer between now and Labor Day, which is a reminder that activity will likely pick up in a couple of weeks.  However, there will continue to be opportunities surface for us between now and then, so long as we’re watching for them and not allowing ourselves to overtrade while this market is range-bound.  From the looks of the daily charts, that could change as quickly as tomorrow.  With that being the case, high levels of cash continue to look good, as this market is still struggling to put together a bounce.

One final mention is that I’m visiting family in expectation of a new family member to be born tomorrow.  That could delay tomorrow night’s newsletter depending on how the day goes, but I’ll have something out for you.

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

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:

PLCM recently broke support and has been unable to reclaim it.  A move lower out of this short-term wedge could bring about another decline, so I’m watching this one for a potential short sale with a trigger price of $27.15.  As with all swing trades, my stop and target levels will be on the Hit List.

Chart courtesy of StockFinder

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:

CF, BID, IT, MMYT, TSLA

Bearish Watch:

THOR, F, VMC, LLL, NUE, EL, ASH, V, SKX, NAV, SLAB, VECO, CECO, CAVM, BRCM, PLCM, CRL, CREE, ALTR

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

I’m away from the office for a few days so I’m coming to you in written format.  I do like getting to mix it up from time to time, and I know some of you enjoy the ability to skim through the Broadcast as well.  Hope you’ve had a great weekend, and you’re ready to make the most of the week ahead!

Last week, we saw the major averages finish mixed and little-changed from the prior week, leaving them with the look on the surface that not much happened.  However, we did see short-term lows get tested, and on a closing basis, they were able to hold.  That doesn’t necessarily mean the pullback is over, but simply that a rest phase may be starting.  Anytime short-term levels are tested and validated, it’s worth paying attention to.

Given that we’ve seen a good pullback from the highs set earlier this month, as well as the fact that many are taking late-summer vacations between now and Labor Day, it wouldn’t be surprising to see the market stagnate a bit here.  We’ve seen some short-term levels get carved out which could serve as support and resistance zones, so unless some good momentum surfaces, it could be that we see some healthy basing action in the near term within those boundaries.

All of that hinges on the ability of this market to hold those levels, but I’ll outline them below.  If we do happen to see some rest kick in, it won’t be the kind of environment in which we want to get heavily positioned in either direction.  Remember, consolidation phases are simply trading ranges, and whenever that’s the case we need to expect limited follow through and more frequent reversals.

As a result, my game plan for Monday is to keep my timeframe short for any new trades, and then re-evaluate tomorrow night if we see support hold again.  I’m just reluctant at this point to be adding much overnight exposure in an environment where follow through could be hard to come by in the short term (until we see some expansion to this little range).  So, high levels of cash right now look good, as does being hedged or simply trading light until more technical evidence surfaces to become more aggressive.

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

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:

POT, BIDU, ATK, CF, CAGC, IT, JKS, AUXL, GES, AAP, MELI, AGCO, GMCR, TTM

Bearish Watch:

DLB, LLL, V, CME, BAC, ICE, CEDC, FCN, CECO

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Optimism over MFE’s takeover by INTC was erased this morning as Initial Jobless Claims reached their highest levels since November 2009.  Earlier this week, it was a bid for POT which helped fuel the market higher, but today it was all about economic concerns rather than M&A.  The open was met with heavy selling into mid-day, when stocks were able to stabilize but couldn’t recover much by the bell.  In the end, the bounce of the past few days easily negated with today’s weakness.

The poor finishes of the past few sessions have been noted here nightly, and I’ve stated my concerns with the trustworthiness of the bounce.  Today as we saw the decline take away the upside progress made previously this week, it reinforced what I’ve been sensing from the charts.  As a result, I’m looking at the short side for several new plays as the indexes now lean on short-term support.

It’s been a pretty slow week in terms of trading ideas, and my watch lists have been rather sparse up to this point in the week.  However, more setups are quickly appearing and I’m expecting to see more arrive in the days to come.  While I won’t be forcing trades here late in the summer, I will still be seeking out opportunities to put capital at risk when there’s potential for reward.

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: SRS, BAC, SM, XCO, VMW, LLL

Swing Trading Candidates:

VMW sold off hard last week when it broke its recent uptrend line, and in the past 5 sessions it has bounced back up to test that zone.  A turn lower from here could arrive any day if this stock is going to carve out a lower high, so I’m watching this one for a potential rollover move in the days to come.  A break of the $77.20 level would mark a multi-day low, and I’ll be using that as a pivot for going short.  My stop and target levels for this one will be on the Hit List, as with all swing trades.

Chart courtesy of StockFinder

LLL has been trending lower for months, and for the past several weeks it has been able to rest.  Currently it’s resting just above support, but if that gets taken out, the stock could accelerate lower.  I’m watching $69.40 for a breakdown to trigger a short sale, and will have my stop and target levels on the Hit List since this one is a swing trade.

Chart courtesy of StockFinder

Bullish Watch:

ATK, CAGC, AUXL, SRS, AAP, AEO

Bearish Watch:

XEC, AMG, OIH, RIG, LLL, WDC, THOR, RTN, CRUS, VMW, BBY, GS, CSC, FSLR, V, CME, ICE, BAC, SM, NETL, SPN, BHI, CEDC, XCO

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!

The rebound from Monday’s lows continued today, although the indexes once again found it tough to hold onto gains.  They finished slightly positive, but for the third straight day they backed off their session highs by the closing bell.  That suggests there are still sellers present, and it’s keeping this bounce difficult to trust.

From a technical perspective, it’s not surprising to see a bounce take place.  We saw multi-week uptrend lines broken last week with a harsh move lower, and that quickly took the market into short-term oversold territory.  To see some attempt at a bounce following that was to be expected, but it’s the way this is unfolding that should leave the bulls feeling a bit unsettled.

Aside from the poor finishes of the past 3 sessions, we’ve also seen volume remain light on the way back up.  That’s no doubt in part due to the seasonality of late-August with many traders taking late-summer vacations before school starts, yet technically, it’s still a negative.  A high-volume selloff followed by a weak-volume bounce is not what lasting rallies are made of.  And on top of all that, the market is still struggling to reclaim former key levels, such as 1100 on the S&P 500 – a level tagged both yesterday and today before pullbacks in each case.

For Thursday, I’m once again looking to limit my activity to intraday plays, as this market simply isn’t showing enough follow through to justify putting more capital to work on an overnight basis.  We’re getting a relief bounce right now that’s lacking conviction, but it hasn’t come to a halt yet.  That leaves me unwilling to commit to new longs or shorts at the moment, so I’m mostly waiting.

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: NETL, ICE, UFS, APKT, WDC, VMW, CME, SM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AUXL, MMYT, APKT, DRQ, BORN, EBAY, UFS, BAX, BID, CROX

Bearish Watch:

WDC, VMW, CSC, GOOG, CME, MFE, NETL, ICE, RRC, SM, VECO

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 takeover attempt on POT gave the market some spark today as stocks traded higher right out of the gate.  The opening gap found additional buyers into early afternoon, but then the market drifted back into the closing bell.  All in all, it was a solid session for the bulls after a 5-day pullback.

Today’s action filled the gaps left last Thursday morning, and that’s technically healthy to see.  The weak finish does leave something to be desired though, and it gives today’s action the look of merely a relief bounce after last week’s break of the uptrend lines.  The wild card is that we’re now entering late-August, which is a time notorious for light volume (like we’ve been seeing) and listless trading.

That light volume is also being seen in the charts of many individual stocks, some of which I’ll outline in tonight’s video.  For Wednesday, I’m planning on going where the action is, so I have a narrow list of names on watch and most of them are momentum stocks.

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: AUXL, WPRT, IOC, CAGC, MMYT, MA, OCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

BAX, IOC, PCLN, CAGC, ADM, BID, MA, CROX, AUXL, STR, WPRT, MMYT

Bearish Watch:

HPQ, WDC, BBY, CSC, OCR, KGC, RBCN, CME, STI, SLAB, BAC, MFE, NETL, ETP

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!

The market bounced back slightly today from a soft open as traders tested the waters on the buy side.  However, it was a timid effort as the indexes finished near flat on the day, unable to gather any lasting upside momentum.  It truly felt like summer today as all the action came early in the session, with indecisive, range-bound action for the final few hours of the session.

On the daily charts, the indexes have been able to stabilize in the past couple of sessions, but no relief bounce has yet arrived.  If that continues to be the case, the daily charts will largely take on the appearance of bear flag or pennant patterns, with last week’s hard selloff being followed merely by consolidation rather than some kind of bounce.

The longer the market spends near current levels, the more it will naturally be working off the oversold conditions without any advance.  That could open the door up for another wave of selling, so it’s still a time to exercise caution out there.

There are very few stocks out there tonight with well-defined patterns, as most of them just need a little more time consolidating to get ready.  That leaves me with a pretty limited list for Tuesday, which is alright, especially if we see another light-volume session like we did today.  On such days, doing less is best.

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: POT, CROX, IOC, OCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

POT, CROX, IT, BAX, HRC, IOC, ATK, PPO, AUXL, STR

Bearish Watch:

JEC, THOR, TIE, GS, F, ROST, OCR, TRLG

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!

Harsh breakdowns last week put an end to the short-term uptrends which had been building since the July 1st low in the major averages.  The reversal-prone nature of this market in 2010 was revisited, with an abrupt shift in momentum and a sudden absence of the dip-buyers who had been so persistent in the past several weeks.

While the shake-up certainly left some traders in bad shape (particularly those who failed to employ or abide by stop losses), it may prove to be beneficial for the longer-term health of this market.  The correction since the April highs has been a harsh one, so we can’t expect to see a steady climb right back up.  Higher lows need to be established on an intermediate-term basis, and it could be that the pullback which just began is on the way to creating those.  The July lows will need to hold if that’s going to prove true, so the coming weeks will be important for the bulls.

In the short term, many stocks which had been building bullish bases and patterns saw a big change of character with those patterns being negated.  As a result, my watch lists saw a big change in complexion last week.  Also, stocks which have broken down are for the most part not in position yet to consider for shorting.  That translates into the need for patience while we let new patterns build, rather than trying to chase moves.  I do expect to see plenty more trades arriving in the days to come, as a market on the move will continue to offer up opportunity.

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: RINO, PXP, MMM, ROST, BID, IT, PLCE, GS, GOLD

Swing Trading Candidates:

GOLD has a series of lower highs and lower lows in recent weeks, as the stock has been dominated by a downtrend line since peaking in late June.  A key support zone (former resistance) has now been met, which if broken, could start another leg lower for this stock.  I’ll be watching the $85 level for a break to trigger a short sale, as this one has some room beneath that level before the next support areas are reached.  As with all swing trades, my stop and target levels will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

RINO, BAX, ATK, SLW, TRW, BID, IT, PPO, PXP, MYGN

Bearish Watch:

WDC, NEM, THOR, BBY, TIE, GS, WCC, FO, FSLR, GOLD, TMO, JEC, MMM, ROST, PLCE

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!

The downside gap which was looking so likely last night proved to be a short-term exhaustion gap, offering some intraday potential on the long side.  The indexes set their lows in the opening minutes, and although they didn’t recover the entire gap, they were able to erase a large amount of it.

In the days and weeks to come, I’ll be watching to see if this decline is able to stop shy of the July lows.  That would be very technically healthy to see an intermediate-term higher low established (relative to the July low), and would set the stage for a rally into year end.  It’s far too early to place any expectation whatsoever though, I’m simply pointing this out as a possibility.  We’ve broken the string of short-term higher lows, but that doesn’t necessarily mean the indexes are headed right for new correction lows.  It’s possible, but I’m looking to keep an open mind as always.

With back-to-back overnight gaps in the past two sessions, and with the market having made a big move off Monday’s highs, it could be that we see a consolidation day tomorrow.  The easy money has been made on this initial move lower, so I’ll be eyeing some potential longs on Friday.

Keep in mind, it’s a summertime Friday, and we’ve seen a sizeable move already this week.  If the afternoon arrives and not much is happening, it’ll be our cue to do very little.

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: MA, MMYT, GDX, BID, ADM, TRW

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

GDX, PCLN, AGU, POT, MMYT, BAX, MDCO, MOS, CF, CMS, SLW, TRW, CAGC, ADM, BID

Bearish Watch:

APOL, ESI, TMO

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