Good evening StockBandits!

If this market is anything, it’s streaky.  We saw that 2 weeks ago with nonstop selling, then last week with nonstop buying, and it’s carried over into this week with another 2 sessions of strength.  Today’s gains were impressive, especially considering the overbought conditions this market is facing in the very short term.  Nonetheless, the shorts are still covering and the buyers are still wading back in.

Tonight’s earnings report from INTC has thus far been greeted with more optimism, and that may very well produce another gap to the upside tomorrow morning.  As a trader, I always respect momentum when it’s present (regardless of direction), and yet I know when moves get stretched, exhaustion gaps can prompt reversals.  So with this bounce getting rather long in the tooth without much rest at all, I’m going to be on my toes tomorrow morning to see how the morning gap gets treated.  We could see a gap fill reversal kick in, so keep a level head among the hype out there that this market is suddenly generating.

This is a very tricky spot to be adding new buys for anything but very short-term trades, and yet it’s also tough to short into this strength before it finally shows signs of fatigue.  For that reason, my list for Wednesday is a limited one, and so I’ll be focused fewer stocks tomorrow and looking to capitalize on whatever moves come our way.

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: ROVI, RGLD, RS, RTP, SLW

Swing Trading Candidates:

SLW failed at resistance a few weeks ago and has since turned sharply lower.  The bounce of the past week has not been impressive, and has created a clean rising wedge pattern.  I’m watching for a breakdown at $19.10 to confirm this pattern and get short the stock.  My stop and target levels will be on the Hit List post here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

NTES, PPO, ROVI, AAP, VQ, ENTR

Bearish Watch:

RGLD, CRK, RS, MTL, SLW, RTP

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!

Stocks held their ground quite well today, as traders returned from the weekend with plenty of reasons to raise cash.  With earnings season starting this week, options expiration, and one heck of a short-term bounce, who could have faulted the bulls for raising some cash out of caution today?

Instead, a quiet day of rest was put in as the market digested last week’s move by simply stagnating.  And although that sort of price action makes for tougher trading due to the lack of movement, it’s very healthy to see a pause rather than an outright reversal – at least not yet anyway.

Today we saw the NAZ and S&P both rally up and stop just shy of the 2220 and 1082 short-term resistance levels I outlined last night, validating those levels.  I don’t expect them to pose major resistance, and a bit more rest for stocks here could in fact bring yet another wave of buying into the picture.  For now, we’ll continue to monitor those zones while we wait to see if the buyers intend to reassert themselves sooner rather than later.

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: CLB, NBL, THOR, RGLD, PRU, LVS, IR

Swing Trading Candidates:

IR has moved swiftly lower from its peak just a few weeks ago, and since then has been unable to bounce.  Instead, it has consolidated to create a very clean bear pennant pattern, so I’m watching for a breakdown to trigger a short sale for me at $33.45.  My stop and target levels will be posted on the Hit List here inside the Hideout.

Chart courtesy of StockFinder

Bullish Watch:

AAP, NTES, PPO, DPS, APKT, THOR, CLB, NBL, LCAPA

Bearish Watch:

AGP, BYI, MHK, FRO, RGLD, PRU, AMED, CRK, IR, URBN, LVS, BBBY, JEC, RS, CLR, WAT, ANV, WMS, WLT, XCO, SKX

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!

Two weeks ago, the market went down every day as new correction lows were reached.  Last week, however, the market climbed every day, and the arrival of the much-anticipated relief rally finally allowed the bulls to breathe a sigh of relief.  What was lost in the previous 5 sessions was reclaimed in 4, and the tug-of-war continues.

The big question here is whether a low has been put in or not.  Some will be quick to declare it has or hasn’t, but the fact is that nobody knows yet.  Only with the creation of a higher low will we know the market has a shot at changing directions for a lasting period of time.  As a result, the next pullback could carry considerable importance if it stops shy of the July 1st low.  We’ll need to watch the character of the next dip and see if the buyers step in to offer support before really committing to the long side.

Last week’s bounce did come on light volume, and that’s usually technically questionable to see rallies come on lighter volume than the selloffs which preceded them.  Realistically, however, it was a holiday-shortened trading week right in the middle of summer, and the volume was in fact heavier than it typically is for the July 4th week.  Nonetheless, that’s keeping things a bit murky right now and adding another piece to the puzzle as traders wait to see if this bounce can turn into something more than simply an oversold rally.

The reversal-prone nature of this market continues to keep traders of all timeframes on their toes, and that’s no different with me.  We’ve seen streaky moves in both directions, and they’ve all stopped suddenly and shifted the path of least resistance.  At some point that will change, but for now, it’s something we must keep in mind and trade with elevated caution.  I’ve stuck with shortened timeframes in recent days as a way to participate in some movement while protecting capital, and that’s entirely alright.  If this market is going to make a lasting turn, there will be plenty of opportunities to get on board without having to feel like we need to nail the lows.

In the week ahead, we have the start of earnings season (watch the calendars!), as well as options expiration on Friday, and that’s sure to keep things interesting.  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: CROX, TSLA, PRU, AMED, NTES, AGP, IVN

Swing Trading Candidates:

NTES has been building a potential rounded low for a couple of months, and has slowly been grinding back up toward resistance.  A move up through $34.20 could free this one up for a quick move higher, so I’ll be a buyer for a swing trade if that level is cleared.  My stop & target levels will be on the Hit List post.

Chart courtesy of StockFinder

AGP recently broke important support and has attempted to reclaim it with a bounce, but it’s been unable to.  A rising trend line has emerged in recent days, which if broken, would begin another leg lower in the stock.  I’ll be looking to short this one if that trend line is broken at $31.90.

Chart courtesy of StockFinder

IVN has built a rising wedge pattern, and these are generally resolved to the downside.  A break of the lower rising trend line at $13.70 will trigger a short sale for me, and I’ll be setting a pretty tight stop and conservative targets on the Hit List for this trade.

Chart courtesy of StockFinder

Bullish Watch:

NTES, PPO, AEL, DPS, IDT, RINO, BJ, THOR, CROX, TSLA

Bearish Watch:

BYI, AGP, PRU, AMED, CRK, IR, MYGN, IVN

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!

On the heels of a couple of advances, including Wednesday’s big rally, stocks opened higher once again today.  The highs were set early in the session though, as some mild profit-taking kicked in to erase the morning gains and take the indexes slightly negative.  Interestingly enough, the dip stayed shallow and the buyers emerged once again before the end of the day to push the market back into the green and right near its highs by the closing bell.

While today’s rally was respectable, what’s so notable is simply the fact that we’re seeing upside follow through.  So many were expecting just a fast but weak bounce before another decline, and that’s not what we’ve seen so far.  The indexes have rallied considerably from last week’s lows, and so far they aren’t done yet.  The shorts suddenly have been reminded of the need for respect of the upside, even though trends are still down.

The volume on this bounce has left something to be desired from a technical standpoint, yet realistically speaking, it’s actually not bad.  Recall that this is still a holiday-shortened trading week, in the middle of the summer, and there are quite a few players who aren’t at their screens this week.  That should keep things interesting next week, but first let’s get through Friday.

Speaking of Friday, my focus will again be on short-term plays in order to manage my risk effectively.  This remains a very difficult spot to be adding multi-day exposure (in either direction), so I’m content to go home in cash tonight and heading into the weekend.  There are some good setups with some short-term potential though, so I’ll cover those in tonight’s video.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: PPO, ADSK, BYI, LULU, IDT, AGP, UFS

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PPO, AEL, DPS, IDT, LULU, BJ

Bearish Watch:

ADSK, IOC, BYI, AGP, F, RGLD, GPN, MLM, SOHU, AMED, HK, UFS

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 major averages rallied from start to finish today, jumping 3% in the process.  The rally attempt which essentially failed yesterday left many traders feeling flat-footed with today’s strength.  That apparently kept the buying pressure on, as it never relented and the indexes surged steadily higher to finish at their best levels by the closing bell.

So, the relief rally has started.  Some key levels were reclaimed today, but the coast still isn’t clear.  We will need to see this market show some follow through on the upside in the days to come, and that’s no small task if recent weeks are any indication.  Beyond that, the next dip we get will be important to gauge as well.  If it finds buyers, then perhaps a tradable low has been put in.  If the next dip merely intensifies by inviting more selling, then we’ll know this bounce is simply a quick rebound that can’t be trusted.  For now, the jury is still out, so let’s see what we get.

There are a ton of failed patterns in the charts tonight.  Paired with the nonstop selling and now this upside reversal, there are very few charts with tradable patterns heading into tomorrow.  Volume still isn’t impressing, and with gaps and reversals still common, my plan is to day trade on Thursday.  Once this market is able to settle down a little, I’ll certainly look to do more swing trading, but at the moment, the waters are far too choppy to venture into for more than a few hours at a time.

I’ll cover my game plan for tomorrow in tonight’s video, and as usual, if you have thoughts you would like to share or questions I might can answer, feel free to leave a comment down below.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: BIDU, AMZN, IDT, VRX, BVF, IOC, MHK

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

IDT, VAR, LULU, VRX, BVF

Bearish Watch:

ADBE, IOC, BYI, AGP, WLP, MHK

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 long holiday weekend left traders apparently feeling like stocks were oversold enough to begin accumulating, as today started out with plenty of enthusiasm.  A gap up open was greeted with some additional strength, taking the NAZ and S&P 500 right back up to test recently broken support zones.

Those former support zones proved to be resistance however, and stocks turned lower to give back their morning gains and go red on the session.  A late-afternoon bounce arrived, and while it was far from impressive, it was just potent enough to nudge the market back into positive territory by the end of the day.  All told though, it was yet another win for the bears to have eliminated the morning strength in such deeply-oversold conditions.  Even though the market finished green, it had the distinct feeling of a failure to only see minor gains notched.

So many seem to have been looking for an obvious bounce here that it may have actually delayed the arrival of one.  As with any sentiment-related expectation, when traders are anticipating a move, they’ve likely already become positioned for it.  With many looking for a bounce in recent days, those traders may have largely already done their buying to act on that belief.  Clearly, there are still plenty of sellers remaining though, and that’s causing issues with this market gaining any upside traction.

I do think there are a few reasons to watch for a bounce, but I have not been buying ahead of its arrival.  For one, this market has been very reversal-prone for the past couple of months, and that could quite easily continue with a bounce.  Also, we have experienced a persistent slide over the past couple of weeks which has happened without relent.  Anytime the proverbial rubber band gets really stretched in one direction, it’s time to be on the lookout for a snapback move.  And finally, failures like we saw today erode trust in the upside, and that causes more to throw in the towel.  Once all trust is lost, the path of least resistance will shift again and make way for a rally.

Right now, that has yet to happen, and there are still plenty of bearish patterns worth trading after a review of tonight’s charts.  I’ll be keeping any shorts on a tight leash, but the inability of the buyers to produce a bounce just yet is still a glaring issue with the long side at the moment.

Heading into Wednesday, stocks with bearish charts are the ones that look the most ready for trades, so that’s where my focus will be.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: MON, BID, PCP, ITT, BIDU

Swing Trading Candidates:

BIDU has moved down within its trading range and now is resting on support.  A break could come any day, so I’m watching support for a break at $66 to initiate a short sale for a swing trade.  My stop & target levels will be on the Hit List post, as usual.

Chart courtesy of StockFinder

Bullish Watch:

L, DPS, ROVI, VAR

Bearish Watch:

ADBE, LLL, PCP, ADSK, BID, FDX, AMZN, DRI, BIDU, ZION, MED, MON, POT, ITT, BYI, AGP, FWLT, RBC, CYN, F, CLF

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!

Hope your holiday weekend was a fun one and you’re rested and ready for a new week of trading.

Traders were apparently buying fireworks instead of stocks on Friday, as Thursday’s lows were in fact respected, yet more downside was seen on a closing basis.  An afternoon attempt at a rally was squashed in the final minutes of trading as the sellers emerged one last time to erase the gains, and perhaps to ensure that the buyers don’t get an ounce of confidence ahead of the weekend.

Whether this next week delivers the bounce we’ve been waiting for remains to be seen, but if there’s one thing we can say at this point, it’s that this market certainly is due for some green.  We’ve seen measured moves take place on the current decline, both in terms of duration and size, compared to the mid-May selloffs.  That adds to the notion that a bounce could arrive soon, aside from the deeply-oversold condition of this market.

What’s so interesting at a juncture like this is that both the bulls and bears are rooting for a relief bounce from here after having seen support zones violated across the board.  The bulls would love an opportunity to raise cash on a bounce, as many of them have likely missed their opportunities to sell on the way down.  A bounce would offer them a second chance.  The bears, on the other hand, know that many stocks are simply too stretched on the downside at this point to aggressively short.  A bounce would give them reason to book profits, and allow them to get repositioned on weak or failing rallies.

Clearly, we’re at a very interesting juncture here.  Anything is possible in this market, and it’s important to consider that as we head into Tuesday. This market could fall apart further, or it could gap lower and rebound, or it could finally put together the long-awaited relief bounce.

My game plan for Tuesday is straightforward.  Once I see some cleaner patterns emerge, I’ll look to do more swing trading.  Until then, my timeframe is going to remain short as there are simply no patterns which are sufficient at this point for holding overnight.  I’ll outline what I’m looking to trade and why in tonight’s video.

As always, I’m available for email help or via the comments here in the Hideout, so let me know if I can help and otherwise go get ’em tomorrow. I’ll see you back here then.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: FDX, AMZN, BIDU, ADBE, ADSK, AEL, BID

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ADBE, L, ADSK, PPO, AEL, YGE

Bearish Watch:

BID, FDX, AMZN, DRI, BIDU

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!

With relentless selling pressure now for the previous 8 sessions, the indexes have been annihilated since last week started.  “Oversold” is the word of the day, as the pace of the decline simply has become unsustainable.  Nonetheless, stocks were greeted with more heavy selling today right from the get-go.

All nearby support has been cracked, and yet so much selling has already been done, one has to wonder who’s left to sell on this particular down wave.  Logic would say that those who still have inventory on hand have decided to wait for a bounce, but the problem for them is that the market doesn’t always operate in a logical manner.

Speaking of bounces, I was sure expecting to see one today, but not in the way it occurred.  Rather than seeing a weak open and a gap-fill scenario, we simply saw steady selling which shook out more remaining bulls before a gradual lift from the lows set in.  Even that wasn’t enough to return the indexes to positive territory, but that might actually be a good thing.

Gradual turns can build momentum, whereas sharp moves tend to reverse.  We’ve sure seen a sharp move lower these past 2 weeks, and it may be beneficial for the bulls to not have put together a giant rally today.  Instead, traders can contemplate whether today’s minor recovery points to exhaustion, and we could see a little better bounce unfold in the days ahead because of it.  That’s no prediction, just one way it might play out.

Tomorrow morning we have the highly-anticipated jobs number, and some disappointment is very likely already priced into that event.  It’s also a Friday ahead of a 3-day July 4th weekend with the market observing it on Monday.  Typically this is among the lightest volume weeks of the year, so traders could quite easily step away from the screens and head out early after the week it’s already been.  Keep that in mind tomorrow, particularly in the afternoon, and stay selective because of it.

I have no interest in adding overnight exposure ahead of the long weekend, and the charts definitely aren’t in shape enough to warrant that anyway at this point.  We need to see a relief rally and some stabilization before taking new trades on either side of this tape, so for Friday, my timeframe is once again going to be day trading.  The sidelines has been a great place to be this week, so remember the importance of patience in trading.

Friendly Reminder: the market is closed on Monday, so I’ll see you back here with the next Broadcast on Monday evening.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: ADBE, GCI, ARBA, L, ADSK

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ADBE, GCI, ARBA, L, ADSK, BID, PWER, PCP, PXD

Bearish Watch:

VXX

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 sharp selloff yesterday elevated the possibility for a narrow-range day today with the need for some rest.  That’s exactly how things shaped up early in the session with some quiet price action and a lack of momentum.  The indexes spent the morning in positive territory, but a growing impatience with the lackluster bounce left traders wondering whether they should sell again to avoid a deeper decline.

That delivered some afternoon selling, which not only erased the minor early gains, but accelerated the pace of the decline into the closing bell.  In the end the indexes gave up another 1% as they took out additional support zones to reach new correction lows.  Clearly, it was an ugly way to finish the quarter.

The scenario from here could easily play out with some kind of exhaustion move to the downside tomorrow before an upside reversal kicks in.  That isn’t to say that the lows would hold, but rather that the odds of a bounce are increasing exponentially by the day.  The QQQQ just shed 10% since last week, for example, with 8 consecutive declines.  While I’m not one to be over anxious to fade streaks, the fact that this decline is unsustainable and the breach of support zones opens the door for traders to get trapped with how easy the downside move has been.  The bears have faced no opposition lately, and anytime either side finds the waters that smooth, it’s an excellent clue to watch for a possible shift – even if it’s only short-term.

The next couple of days are going to be quite interesting, as we’re deeply oversold and facing the first day of a new quarter tomorrow.  Then we have Friday ahead of a long holiday weekend (with the market being closed on Monday in observance of Independence Day).  Friday could very well be a quiet day as traders disappear from their screens to head out for the holiday, and we’ve seen a lot of big moves on Thursdays in the past 2 months as well.  Therefore, tomorrow could prove to be pivotal if this market is going to reverse…we’ll just have to see.

I’ll outline what I’m looking for in tonight’s video, but the bottom line is that this is a spot to be very careful with new shorts and best to wait for signs of life before getting long.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: BIG, DRI, LEN, PCP, DIA, SPY, QQQQ

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CBOE, LNCR, NTES, NEM

Bearish Watch:

GS, RAH, DWA, MFE, LEN, MON, DRI, MED, BIG

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 steady pullback from the recent high was followed by a few days of inactivity.  It was uncertain whether that would prove to be stabilization before a bounce, or merely a rest before more selling.  That uncertainty disappeared today as stocks broke down hard, gapping lower and continuing south for the remainder of the day to post 3-4% declines in the major averages.

The NAZ and S&P 500 each marked new correction lows today as they took out both the June and May lows.  What was perhaps most notable was the fact that no attempt was made at a bounce from those zones, exhibiting the sheer lack of buying interest.  This of course means the bulls have squandered an opportunity at creating a higher low, and serves as an excellent reminder that we’re still in a correcting market environment.

What’s so tricky right now, however, is the fact that stocks are breaking down but are too extended near term to be shorting for anything but quick trades.  While the weakness could certainly persist before we see a relief bounce (or rest), most names have already made sizeable moves in the past 7 sessions, elevating the risk on initiating new short positions for timeframes outside of a few hours.  Keep in mind, we’ve seen market declines in 6 of those 7 sessions.  It’s important to recognize that even though some key levels have been broken, a snapback rally could kick in at any moment.

Heading into Wednesday, my game plan is to remain in cash and stick with intraday trades.  The dust needs to settle a bit before clean enough patterns for swing trading will emerge, so it’s important to protect capital in the meantime and let those trades come to us.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: BIG, DRI, DWA, RAH

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SRCL, DPS, EXPR, NEM

Bearish Watch:

MED, BIG, MDC, AGP, NTRI, DRI, LEN, DV, MFE, DWA, RAH

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