Good evening StockBandits!

Last night I said “Two big trend lines are converging quickly, and I am expecting to see a solid break of one of them take place in the next couple of days, if not tomorrow.”

Well, today that break arrived in the form of a large downside gap and some continuation lower as the day progressed.  The indexes attempted to stabilize into the early afternoon, but some additional selling pressure came in to take the market out near its lows by the closing bell.

After hours, the futures are trading lower once again on the heels of bad news out of CSCO, indicating we could see another downside gap tomorrow morning.

Ideally, the break would have happened naturally (no gaps) and given an opportunity to hop on board on the short side, but about 2/3 of today’s move happened overnight.  Regardless, it is a technical sell signal for the overall market, reminding us to raise cash and reduce long-sided risk.

It’s tough to chase the short side here as well, so my plan for tomorrow is to primarily sit tight and focus on just a few names.  Today’s selloff damaged many bullish charts which had been building, so there’s not much available for trades tomorrow as a result.  I’d like to see the dust settle once this initial selloff finds some stability, and reassess at that time.  There are a few trades I’m eyeing for tomorrow, but I’ll keep the ETF’s in mind alongside them for possible trade candidates if the market continues to move.

Be sure to catch my post from mid-day today regarding patience and waiting (scroll down), as there are some good reminders for the current environment.

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: GOOG, GS, RDC, ARUN, AGO, CF, HAR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

BAX, AGO, NXTM, CF

Bearish Watch:

MHS, NEM, TIF, RTN, GS, WCC, WHR, CSC, GOOG, LLL, APOL, FO, ESI, FSLR, NUE, BBT, HAR, GOLD

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!

Early selling pressure left the indexes sliding lower today as the buyers stayed away ahead of the highly-anticipated FOMC announcement.  Prices were able to stabilize for a few hours, and once the news was out, it sparked a partial recovery with some afternoon strength.  The indexes remained red by the closing bell, but once again they erased quite a bit of their losses.

In recent weeks, we’ve seen this occur a number of times, as even on pullback days the market sees a lift from its lows.  That behavior points to the presence of buyers who are stepping in on weakness to support prices, and it’s a big part of why we’re in a short-term uptrend.

The technicals remain favorable for the bulls at this point with recent higher lows intact, but breakouts are needed for the NAZ, S&P 500, and RUT as they churn beneath important zones.  While some rest is certainly healthy to see, the bulls don’t want to appear stagnant.  That would indicate the buying interest is subsiding, so the next several days could prove important for the short-term health of this rally.  Two big trend lines are converging quickly, and I am expecting to see a solid break of one of them take place in the next couple of days, if not tomorrow.

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: GOOG, CSC, POT, MOS, RIG, QCOR, RINO, MDCO, DRC, IOC, RDC

Swing Trading Candidates:

RDC recently cleared key resistance with a bit of an inverted head and shoulders pattern, and in the past few days has pulled back quietly to test that breakout area.  Price has held that zone, and currently is sitting just beneath a trend line.  A move up through that trend line at $27.15 will free up this stock to move higher, so I’ll be a buyer if that occurs.  As with all swing trades, my stop and target levels will be on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

AMP, RINO, POT, MOS, CMI, BAX, DRC, RIG, MDCO, VMW, VRSN, ARUN, RDC, DCTH, QCOR, IOC, WCC, JOE, ATK, EQIX, VCI

Bearish Watch:

WDC, VMC, WHR, ATHR, LIFE

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!

Traders returned from the weekend willing to keep stocks afloat, as early strength was maintained throughout today’s session.  The intraday momentum was lacking, as was the volume, ahead of tomorrow’s FOMC meeting.  With a potential market-moving event on the horizon, few were willing to really step out today in boldness, and instead were willing to bide their time while waiting to see what Tuesday brings.

Technically, this market remains in very good shape.  We’ve seen multiple higher lows established in recent weeks, and buyers have stepped in on every minor dip to provide support.  At this point, both the NAZ and S&P 500 are facing important levels at 2307 and 1131, respectively, which could be cleared as soon as tomorrow.

Perhaps the best part of the technical setup right now is the fact that the next move could gather momentum quickly as prices move one way or the other out of their 2-week bases.  No index is extended at this point, and that leaves ample opportunity for some acceleration to occur if this market can get moving.

There are a number of stocks gearing up for moves, some of which are ready now and some which need more time, but I am expecting to see more arriving daily.  For Tuesday, I’m going to primarily be looking to day trades for new plays, as adding risk for multi-day positions entails higher risk ahead of the Fed.  Nonetheless, there is one setup I’m eyeing for a swing trade, which I’ll also outline below.

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: AMG, PVH, ASH, VMC, VMED, BUCY, MDCO, AFL, TIE, ARUN

Swing Trading Candidates:

ARUN continues to trend higher with shallow dips marking higher relative lows for the stock in recent months.  For the past 2 weeks, the stock has pulled back in a shallow fashion, digesting the late-July rally, which is very healthy.  This has created a well-defined wedge pattern, and a move up through the upper trend line at $18.20 will trigger a buy for me.  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:

AMP, VMED, JNPR, WFT, BUCY, JLL, CMI, AMG, BEN, FISV, PVH, ASIA, BAX, ERJ, AFL, MDCO, VMW, ARUN, GS, OEH, VNO, F, HON, WLL

Bearish Watch:

WDC, MHS, DLB, TIE, VMC

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!

Last week started with a gap higher and some follow through, and it ended with a shakeout move to the downside.  In between, there wasn’t much taking place.  In the end, gains were made, and yet the market was able to move sideways as well.  That’s win/win for the bulls.

The uptrend lines from the July lows were tested, and held, and once again the major averages have an opportunity to push past resistance zones in the days ahead.  The rest was healthy for the indexes, and for individual stocks alike.  Even the dips were kept shallow, thanks to buyers stepping in to lift stocks from their session lows each day for the 2nd straight week.

The underlying bid beneath this market is giving few reasons to be short right now, if any, so my focus is on the long side until that changes.  In the short term, I’ll key off the rising trend lines which began on July 1st, and watching to see if the series of higher lows and higher highs is able to continue.

It’s sure to be another interesting week ahead of us with the technical situation we’re in, as well as an FOMC day on Wednesday.  It’s as important as ever to stay disciplined, but there are setups to be traded.

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: CENX, BEN, GDP, FISV, CMI, BAX

Swing Trading Candidates:

CMI recently cleared major resistance at the $77 area, pulled back to test it, and has held above that zone.  A new high would be made at $82.40, and I’ll be a buyer for a swing trade if that level is crossed.  As with all swing trades, my stop and target levels will be posted to the Hit List here inside the Hideout.

Chart courtesy of StockFinder

BAX saw a huge correction earlier this year but was able to stabilize for a few months and stop trending lower.  Since then, it has started to slowly work its way back up, and if it can push through resistance at $45.35, it could see an acceleration move.  I’ll be a buyer if that level is taken out, and my stop and target levels will be on the Hit List for this swing trade.

Chart courtesy of StockFinder

Bullish Watch:

VMED, TEN, BTU, NZ, WFT, BUCY, AN, CMI, EL, SOHU, DPZ, BEN, DRC, FISV, HRC, VALE, SHLD, PVH, GNK, EMN, EBAY, TIF, LNC, CRUS, ALK, IDSA, BIDU, MTL, WYN, NYX, GDP, CENX

Bearish Watch:

WDC, V, THOR, RTN, RRC

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 jobless claims number this morning left traders feeling a bit uneasy, and as a result, we saw a soft open accompany that.  However, the indexes lifted once again off their session lows to finish only slightly negative, which is a recent theme we’ve seen on pullbacks.  The short-term uptrend is still intact from the July 1st low, and that’s also adding to the confidence of the buyers who are keeping a bid beneath this market.

Tomorrow morning, we’re likely to see a sizeable gap in one direction or another as the nonfarm payrolls number is released.  That highly-anticipated report is due out an hour before the opening bell, and today’s inactivity reflects on the attention being given to tomorrow’s number.  The big topic of the economy right now is jobs, so there’s little surprise the market is watching it so closely.

As with any news, it’s not so much what the news is, as much as it is how the market responds to it.  I’m no economist, and don’t care about the actual number, but I will be gauging the market response closely.  If we see a gap down, I’ll be monitoring it closely to see if the buyers step in to buy another dip.  If we see a gap higher, I’ll be watching to see if profit-taking kicks in.  Either way, tomorrow’s action could shed some light on the current psychology of this market, despite the fact it’s a summer Friday.

I will be taking it pretty easy tomorrow afternoon if the morning fireworks fail to produce some good price action (trend day, gap fill, etc.), but there are some setups on my radar.  And as I mentioned last night, I would expect to see more patterns emerging after the past few days of healthy rest for this market.

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: ASH, BUCY, VALE, NEM, AMP, CMI, BEN, DRC, V, CERN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AMP, VMED, TEN, BTU, ISLN, NZ, SDRL, WFT, BUCY, AN, NTGR, CMI, EL, R, SOHU, DPZ, AMG, DRI, BEN, OII, OIH, DRC, MET, FISV, VALE, ASH

Bearish Watch:

CERN, WDC, CEPH, ZION, MHS, AKAM, DLB, CBOE, V, NEM

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 edged higher today with some rather quiet action.  The buyers weren’t in a big hurry to put cash to work, although they never went away either.  Today’s advance brings the NAZ and S&P 500 near resistance zones, so I’ll be watching for a possible push through those levels with virtually any additional upside from here.

In looking through many charts this evening, I am still seeing a ton of stocks which are behaving quite well technically and still appear poised for higher prices.  The difficulty at this point, however, is locating well-defined entries to hop on board if this rally continues.  I suspect in the coming days we’ll see quite a few more setups emerge, but heading into Thursday, I have a pretty streamlined list I’ll be focused on.

There is one correction I need to point out in tonight’s video, which is that SOHU is a swing trade candidate (in the video I refer to it as a day trade candidate).  The corresponding chart markup is down below, as always with swing trades, and this one will also be on tonight’s Hit List post (for swing trades) to reflect that.

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

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CCJ, BWA, BEN, OII, WFT, CERN, SOHU, ASH, GMCR, VPRT

Swing Trading Candidates:

SOHU rallied sharply to end last month on a positive note, and since then has consolidated on light volume.  The stock is sitting in a very tight pattern here resembling a bull pennant, and looks ready to break out any day now.  Given that this one has put in adequate rest, it could easily play catch-up once it clears resistance, particularly if the market shows strength.  I’ll be looking to buy this one if the $48.10 level is cleared, and will have my stop and target levels on the Hit List post here in the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

DRI, MOS, MON, NTES, ADSK, BIDU, SOHU, MTL, ASH, JNPR, MCO, CMI, AONE, AMG, FFIV, ISLN, NTGR, TWC, DPZ, GET, NCR, HAR, R, GMCR

Bearish Watch:

NEM, CERN, AKAM, VPRT

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 Monday’s ramp higher, a day of consolidation arrived today for the indexes.  The market gave back only a small piece of what was gained yesterday, which is a very healthy way to digest rallies.  Momentum was absent, the downside gained no real traction, and once again we saw a decline which finished well off the session lows.  Better yet, volume remained quiet.

Immediate follow through isn’t a necessity, and particularly right now with the NAZ, S&P 500, and RUT each sitting just shy of key resistance zones, a little rest is actually a good thing before a breakout attempt is made.

Rest days like today also help individual stocks to base, and there was some constructive price action going on from what I saw in the charts tonight.  More candidates are beginning to emerge, and that’s encouraging as well.

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: MCO, OVTI, CSCO, GOLD, GG, DRI, NEM

Swing Trading Candidates:

DRI has already created one higher low, and appears to be in the process of creating a second one.  A move up through the trend line at $42.50 will trigger a buy for me as this one begins another advance in the uptrend.  The Hit List will contain my stop and target levels for this swing trade.

Chart courtesy of StockFinder

NEM sold off hard from its last weak bounce, and over the past several sessions, another poor advance has occurred.  A move down through the trend line at $55 would constitute a break of support, and I’ll be looking to short sell this stock for a move to lower levels.  As with all swing trades, my stop and target levels will be on the Hit List.

Chart courtesy of StockFinder

Bullish Watch:

LLL, NTES, DRI, IDT, MON, TSLA, BP, JNPR, MCO, HOT, GS, ATW, AMG, MOS, FFIV, SID, NTGR, OVTI, CSCO, HAR, SNDA, ATK, NTAP

Bearish Watch:

CRK, MHS, GDX, GG, NEM, GLD, GOLD, XEC, WDC, COV, RRC, ATHR, BKE, ORLY, WBSN, BBT

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!

Quiet action at the end of last week left the indexes looking like they could easily turn higher.  The minor dip we saw came with finishes off the session lows each day, as I noted last night, and that created an opportunity for a higher low to be formed on the daily charts once the pullback came to an end.

Today, it appears the pullback is done.  Stocks surged higher today, holding an opening gap to the upside and building on it as the day progressed.  Monday morning optimism is often times a chance for profit-taking, but today it kicked the buyers into gear and stocks never looked back.  By the closing bell, the indexes had gained roughly 2% across the board.

The DJIA actually broke out today with a solid move through the June high.  The NAZ, S&P 500 and RUT each have now come to within spitting distance of key resistance levels, although the June highs are still some distance away.  Regardless, the bulls now have an opportunity to flip this “relief rally” into a full-fledged trend reversal.  Follow through will at some point be needed in order to make that happen, so it should be a very interesting market we’ll face in the days ahead.

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: NEM, GG, AEM, MON, F, HAR, FMER, GOLD

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PCP, ESI, BID, IDT, NIHD, DRI, MON, F, SOHU, TSLA, BP, ASH, CRUS, TIE, JNPR, HOT, GS, ATW, EMR, MOS, CRM, FFIV, X, FMER, JLL, GET, NCR, MGM, HAR, SNDA, R

Bearish Watch:

MHS, GG, NEM, AEM, GOLD, ATHR, COV, NFLX

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’s session was one of those days where it looked like very little happened, yet there was a lot happening beneath the surface.  With a gap down on the open, the indexes continued their pullback which began from Tuesday’s gap up.  Early trading left stocks marking new lows on the week, but once again, the buyers emerged.

Just as in the previous 3 sessions, the market recovered from its lows of the day to erase some of the losses.  While we didn’t necessarily see strong closes per se, we saw no weak finishes.  That suggests the buyers are offering support and stepping in to pick up shares on the dip, which is encouraging.

The positive finish on Friday leaves the charts looking like another short-term higher low has just been established, although more strength from here would certainly help to confirm that.  At any rate, uptrend lines were tested Friday and held, reminding us that the relief rally is still intact for now.

There are a lot of bullish charts out there, but I’d like to see just a little more stability kick in on many of them.  The overall action has been very bullish of late (the month of July), so let’s see if that carries over into August as we kick off a new month tomorrow.

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: JLL, CCL, X, ISLN, TWC, ONXX, CBOE

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MOS, APA, BIDU, SHLD, BID, CRM, FFIV, ISLN, X, BUCY, CCL, AN, SNDK, LCC, TWC, ONXX, ALV

Bearish Watch:

MYGN, CBOE, MHS, GG, NEM, RRC

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 short-term pullback which began with Tuesday morning’s gap fill continued into today, with the indexes again erasing a positive morning gap and finishing negative.  The action wasn’t entirely negative though, as the market was able to rally back from its worst levels to finish only down slightly.  That points to an underlying bid beneath this market, which is bullish when combined with the recent higher lows and higher highs we’ve seen.

Today’s volume picked up over the past couple of sessions, and that’s most likely due to the churning action we saw intraday.  The morning gap was filled, then stocks staged a rally mid day, and then we saw some additional profit-taking.  So all told, it was really a constructive session.  The heavier volume simply points to turnover, and in my opinion was offset by the close well off the low.

Many charts are beginning to set up patterns now, which is great to see.  We’ve seen a solid rally and a shallow pullback, and that’s creating quite a few flag-like patterns in the charts.  Most still need a little time to really mature, but I’ll be going over several in the video tonight.  That way I can point out what I’m watching for, and you can sharpen your chart-reading skills as well.

One last note is that I’ve been invited by my good friend Charles Kirk to do a mid-day Strategy Session on Friday, where we’ll do a live chat and attendees can submit questions.  I’d love for you to join us.  It’s free, and should last about 1 hour.  It begins at 12pm ET, and you can use this link to attend…hope you can make it!

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: ISLN, ARUN, FNSR, ONXX, BUCY, V, XCO, AEM, FFIV, SID, AN, SNDK, MYGN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MOS, ISLN, FFIV, GS, BIDU, PWER, IDT, ITT, OIH, SOLF, HOT, SID, AN, SNDK, ARUN, LCC, FNSR, ONXX

Bearish Watch:

SYK, ICE, CLB, V, MYGN, XCO, GG, NEM, NFLX, LNCR, SAFM, AEM, ZMH, DO

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