Good evening StockBandits!

Today’s action was quite indecisive right from the start, with some intraday reversals preventing either side from gaining any lasting momentum.  In the end, the market finished little-changed from Friday’s levels, but yet in the red once again.

Some important levels are still being respected though, and that holds a little promise for now for the buyers.  Nonetheless, the bulls will need to get in gear soon and put cash to work if they want to produce that higher low they’re looking for, rather than simply stand aside and allow the bears to send stocks right back toward the lows.

If there’s one thing that’s been consistent about this market for the past couple of months, it’s the fact that reversals have come on a pretty regular basis.  Timing is everything in trading, but of course if an upside reversal arrives sooner than later, it would give the index charts a far better appearance for those who are looking for higher prices.  For the moment though, things are simply stabilizing, leaving the ball in the bulls’ court.

Heading into Tuesday, there are a handful of charts I like the looks of, but only for quick trades.  One of the swing trades from last night’s Broadcast triggered today (FAST), while the other (CTRP) did not and has been removed due to relative weakness today.  More notes are of course included in the Hit List post.

Overall, I’m staying conservative here while waiting for the next move to begin, and that should allow me to move quickly once this rest phase is completed.  I’ll cover my plays for tomorrow in tonight’s video – hope you enjoy it!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CRUS, NZ, AGP, FTI, CNW, DV

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AKAM, FFIV, SRCL, FAST, OVTI, ARMH, CRUS, NZ, NTES

Bearish Watch:

RL, DO, MED, HD, AGP, AMG, FTI, QCOM, WDC, PBR, UPS, CNW, GES, R, MON, FO, AGU, DV, LLL, ANF, CEDC, DRQ

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 pulled back in a steady fashion last week, giving up 3-4% as the bulls went 1-for-5 on the week.  That pullback came right off the June highs, which of course were established after nearly a one-way rally up from the lows.  There’s been plenty of back and forth in this market, which means it’s still reversal-prone and very much catering to traders.

The good news at this point is that some stabilization seems to be setting in with Friday’s action, leaving the indexes just above some key levels.  In addition, the pullback has come on light volume, which suggests the buyers haven’t completely disappeared in an effort to raise cash.  And finally, with a steady pullback off the highs, this market still has good potential to establish a higher low on this dip.  Relentless moves tend to be more reversal-prone, and the lows are still a considerable distance away, and that raises the odds that at least a short-term tradeable bounce may arrive soon.

The key for the week ahead will be to see stocks show some signs of life again to help create that higher low look on the daily charts.  We’ve already seen higher highs created with the early-June highs being cleared last week, so the next element the bulls will be pulling for is going to be a higher low.  The opportunity is before them, so all eyes will be on the buyers this week to see if they can produce it.

It’s too early at this point to declare this a major turning point for the market, and in fact many still fully expect to see the June lows penetrated eventually.  Things may play out that way, but for now as short-term traders, our job is to identify good opportunities and capitalize on them.  Things look somewhat short-term oversold at this point, so it’s a good spot to exercise caution with new shorts.  Shortened timeframes are always best in reversal-prone markets, so keep that in mind this week as well.

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:

FAST has pulled back in recent days to create a falling wedge pattern, which is bullish since these usually are resolved to the upside.  Given the upward momentum this stock exhibited prior to this wedge pattern, I like the potential for another leg up soon.  I’ll be a buyer for a swing trade if this one clears the upper trend line at $52.75.  My stop and target levels are displayed in the Hit List post.

Chart courtesy of StockFinder

CTRP broke out two weeks ago and then last week pulled back on light volume.  The pullback held the breakout zone (dashed line below), which is very positive.  This one has had some nice recent momentum, so a turn higher from here could produce another nice advance.  I’ll be a buyer if the trend line is broken at $44.40 for a swing trade.  My stop and target levels are displayed in the Hit List post.

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

Chart courtesy of StockFinder

Bullish Watch:

ARBA, VMW, AXE, CAT, MMM, CLF, ANV, SRCL, NAV, CTRP, YGE, CMI, CF, OVTI, OIH, AONE, EGO, CRUS, MCO, VECO, XCO, FAST, IVN, RINO, UTX, PCAR, CDE, LNCR, SFL, BEAV

Bearish Watch:

BIG, QCOM, BP, MON, MOS, GPN, CECO, DV

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A few days of selling pressure after Monday’s downside reversal are starting to set up for a bounce, but it isn’t here yet.  Stocks suffered once again today as they reached new lows on the week with increasing volume, and the dip buyers stayed away yet again.  Volatility is back on the rise, and the selling thus far this week has been relentless, but it’s not all doom and gloom.

The June lows are still a considerable distance away, which means that the potential higher low I’ve been looking for on this pullback may still play out.  Add to that the fact that the pullback has been rather steep, and the odds for an upside reversal begin to increase.  We’ve seen a number of steep moves in the past couple of months, all of which have led to short-term reversals.

And speaking of short-term, that’s the timeframe I’m referring to here.  The establishment of a higher high has already occurred, and the next need for the bulls is a higher low.  That may not be a single-day event, so it’s important here to continue to respect this market’s ability to decline.  All I’m watching for is a potential multi-day bounce, and beyond that, we’ll have to evaluate if and how it unfolds.

Nonetheless, it’s been a good week to be short and then in cash.  As we head into Friday, I’m looking at a few potential day trades, but not looking to commit any capital over the weekend.

I’ll see you back here with the next Bandit Broadcast on Sunday evening, enjoy your weekend!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CRUS, XCO, MED, BP, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

APKT, GOLD, AZO, ARBA, ANV, OVTI, CRUS, AAPL, XCO

Bearish Watch:

MED, BIG, BP, APC, CF, MOS, MON, GPN

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!

For an FOMC day, it sure wasn’t very lively out there.  Stocks were sluggish all day as they tested the waters both on the downside and upside, only to finish little-changed from last night’s levels.  Momentum was fleeting, and it was truly a flipper’s market today with the frequent changes of direction we saw.

And while today’s action itself wasn’t impressive, it may have some implications for prices in the days ahead.  Note that I said ‘it may have.’  What’s of interest is that we’ve pulled back from Monday’s highs, and today prices stabilized.  We didn’t finish strong, but we did finish off the lows of the day.  That might point to some short-term pullback fatigue, so tomorrow could be telling in that regard.  A turn higher from here, or even some additional stabilization, would add credibility to the possibility of a higher low resulting from this dip.  The big advance from the June lows sets up that scenario, but the bulls are going to have to go out and make it happen.

For the time being, we’re still inside the trading ranges on the NAZ, S&P 500, and RUT, so for me that means I’m waiting for more technical proof of a higher low being established before I will commit much capital for more than just quick trades.  With that said, there are several names I’m eyeing for trades tomorrow, and I’ll outline them in detail in tonight’s video.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CTRP, CF, VECO, CBOE, OVTI, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LVS, GOLD, AZO, RBCN, ANV, FFIV, MENT, CTRP, ARUN, YGE, CF, OVTI, ARMH, MHP, EGO, CRUS, CBOE, VECO

Bearish Watch:

BP, AMG, APC, F, GPN

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!

It was a pretty uneventful morning today with each of the major averages marking their highs early in the session, only to settle into trading ranges for the remainder of the morning.  However, the morning lows were broken with the arrival of the afternoon, and stocks declined steadily into the closing bell.

Recent resistance zones which had turned into short-term support levels were undercut and never reclaimed, continuing the weakness from yesterday’s downside reversal.  The indexes are now back inside their trading ranges once again, but the potential for a higher low to result from this pullback still remains.

Trading range price action is choppy and indecisive for the most part, so while we’re back inside the ranges, it’s best to stay selective and wait for high-quality patterns to develop.  My game plan heading into tomorrow is simple and straightforward with just a few potential plays.  I want to respect the frequent reversals which tend to be so common within trading ranges (now that we’re back inside one), so I won’t be building any big positions.  Add to the fact that tomorrow is a Fed day (2:15pm ET announcement), and there’s plenty of reason for caution here.

I’ll cover my trade ideas and of course the market action in tonight’s video.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MED, AMG, ADSK, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RBCN, VXX

Bearish Watch:

MED, CAT, HD, TEX, AMG, FTI, MMM, ADSK, BP, APC, CF, MON, LEN, F, WL

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 jumped out of the gate this morning to kick off a new week of trading with a sizeable gap.  The early strength wasn’t able to hold up though, and stocks tumbled into negative territory before it was all said and done.  After the bounce we’ve seen from the June lows, to see an upside gap get sold like this isn’t too surprising.  It’s also another example of why Monday morning optimism should be greeted with some skepticism.

Although the day’s gains were erased, it was interesting to see former resistance zones serve as support – for the time being anyway.  The S&P 500 respected 1105 on the pullback, and the NAZ was able to hold 2282.  We saw the RUT fail once again to clear 670 on a closing basis, so our levels remain valid until further notice.

Tomorrow is the start of a 2-day FOMC meeting on interest rates, with the announcement coming on Wednesday at 2:15pm ET.  Although no news should be anticipated tomorrow, the mere reminder of a 2-day meeting leaves traders less willing to commit, which often creates an environment best for quick-flip trades.  Keep that in mind as we head into Tuesday’s action, as I’m only eyeing day trades after a thorough look through tonight’s charts.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: VXX, F, MED, CAT, LEN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DPS, FAZ, VXX, TWM

Bearish Watch:

MED, JOE, HOG, RL, JLL, FLS, HD, BP, WDC, UPS, ALB, EQR, CF, MON, FO, SHLD, MAR, F

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!

And Happy Father’s Day!  I am a father to 1 already and have a 2nd on the way late this year – having a lot of fun and hope your families are well!

On to the market… We saw an important short-term breakout last week as the major indexes were able to push through some resistance zones (with the exception of the RUT at 670) and then hold them for the final few sessions of the week.  That’s a solid performance on the part of the buyers, particularly after their consistent presence for the past few weeks coming up from the June lows.  We’ve seen rallies of 6-8% across the board, which is no small feat given the persistent weakness which had been squashing each rally.

That does not mean the coast is clear yet, because the creation of higher highs will now need to be met with the creation of a higher low in order to truly shift the trend.  That may or may not happen this week, but the next dip will be very telling in terms of the validity of this bounce.  If the buyers are quick to step in and offer support, we’ll be able to buy with some greater confidence of a secondary advance.  If instead the weakness invites more selling pressure, we’ll know to remain cautious.

As for the week ahead, I think we either see the market accelerate higher out of the small flag-like patterns which have emerged on the daily charts of the indexes, or we see a pullback kick in to test the resolve of the bulls.  I’ll be keeping a close eye on last week’s highs as key areas to signal another advance, as well as the resistance zones which have turned into support for a possible move lower.

Heading into tomorrow, there are a number of plays I’m eyeing, but only for quick trades since we’re currently in a short-term trading range.  I’ll outline them in the video, as usual, along with my rationale and levels for each trade.

Enjoy your Father’s Day, and go get ’em on Monday!

Leave any comments or questions down below and I’ll be happy to address them!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: MENT, IT, NVLS, PXD, RL, AMG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NFLX, DECK, DPS, LVS, ARBA, IT, GIL, RBCN, CAL, QCOR, MENT, FFIV, RKT, TEN, TK, NVLS, CROX, ARUN, NYX, PXD, CMI

Bearish Watch:

HOG, RL, JLL, CSTR, AMG, ALB, ESI, CNW

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 rip-roaring day on Tuesday, traders decided to lay low today.  Stocks took a much-deserved rest, finishing not far from yesterday’s closing levels in a narrow-range, light-volume session.  Key levels are still close by, which means this market still isn’t out of the woods yet, but the market did a good job of holding onto yesterday’s gains.

The issue right now is that this bounce has occurred in a straight-up fashion, making it very difficult to consider new trades here on the long side for anything but quick-flip day trades.  Many stocks are quite extended and need to rest, plus there are a great number of rising trend lines which are prime pivot points for initiating shorts if they get crossed.

My game plan heading into tomorrow is outlined in tonight’s video, and there are several potential plays on both sides of the tape.  We’ve seen a recent history of big moves taking place on Thursdays, many of which were declines, so that could play a role tomorrow.

With Friday being options expiration day, and along with the fact that I have something I have to tend to tomorrow evening, there will be no Thursday Bandit Broadcast this week.  I will update the Hit List tomorrow night late for any open swing positions, but will focus on swing trades on Friday.  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 on Thursday and Friday.  I’ll see you back here with the next video on Sunday evening.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: IOC, NAV, TWM, GNK, JLL, CNW, ALB

Swing Trading Candidates:

JLL has just tagged the upper end of this descending channel, and is now starting to back away from it.  With a light-volume bounce and no break of the channel, I’m expecting a move lower within the channel in the coming days.  I’m looking to get short upon a break below $73, and my stop and target levels are highlighted in the Hit List post.

Chart courtesy of StockFinder

CNW has lower highs already in place in recent months, and now may be in the process of carving out another one if the rising trend line gets broken.  I’ll be going short if the rising line gets broken at $33, looking for a move back down.

Chart courtesy of StockFinder

ALB is range-bound and has just bounced on weak volume back to resistance.  Today the stock began to turn lower, and with so many distribution days of late, I like the risk-reward for this trade as a short sale with a stop outside of the range.  My entry will be if this one breaks $42.60 on its way back down, and I’ll highlight my stop and target levels in the Hit List post.

Chart courtesy of StockFinder

Bullish Watch:

NFLX, DTV, GIL, LOOP, SM, FAZ, CLF, FRG, ANV, QCOR, DPS, FFIV, SRCL, IOC, PBR, VMED, CLH, NAV, EXPR, TWM

Bearish Watch:

HOG, JLL, MDC, GNK, QCOM, VFC, RIG, HAR, BEN, APC, WDC, UPS, ALB, CNW, GES, BA, R

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 strong open this morning put stocks in rally mode, and that’s exactly what they did the rest of the day.  Buyers pushed stocks steadily higher with a very clean intraday uptrend, nudging the indexes beyond key short-term resistance levels which contained stocks on Monday.

Today’s upside breakout from the 3-week trading ranges is a positive event.  Low-level consolidation phases, no matter how wide, are downside continuation patterns within downtrends.  Today’s move negates those ranges with a solid push back above them, opening the door for additional strength in the days to come.  The jury’s still out on whether the correction has fully run its course, but at the moment, support has been found and the buyers are reappearing.

The concern with the current bounce is that it’s becoming somewhat long in the tooth, given that the S&P 500 has rallied 7% and the NAZ has ralled 7.7% since the lows of last Tuesday.  That’s serious progress in just a week’s time, which means a pullback could arrive any day now.  Once it’s here, we should get a better feel for the strength of this bounce.  If the buyers are eager to put cash to work on the next dip, then we can trade the long side with greater confidence.  If instead weakness only leads to more sharp selling pressure, then we’ll know the coast still isn’t clear.

That places added importance on the next few days, which should make it a very interesting trading environment as we head into options-expiration Friday.

By the way, swing candidates (which never triggered entries) WHR and MAN were removed tonight due to their patterns having changed.  WHR broke its downtrend line, and MAN will need to be adjusted for a possible trade in the coming days if I revisit the name.  For now, it’s still in rally mode, so I’ll keep it on watch.  New candidates are discussed in tonight’s video.

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

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: GIL, ANV, FFIV, MMM, DRI, DPS, HOG

Swing Trading Candidates:

DPS has held up extremely well while the market has sold off the past couple months, and now this one looks ready to start a new leg higher.  First it needs to clear the trend line at $38.10, so that’s the buy point I’ll be using for an entry if and when it’s cleared.

Chart courtesy of StockFinder

HOG remains weak since turning lower in April, and this bearish rising wedge may hold some potential for a short sale.  Today this one didn’t participate much, which is another reason I like the prospects here for a trade.  I’ll be looking to short this one if the lower trend line gets broken to confirm this wedge pattern at $27.25.

Chart courtesy of StockFinder

Bullish Watch:

AKAM, GOLD, AZO, DTV, VMW, GIL, GLD, FRG, ANV, QCOR, DPS, MENT, FFIV, SRCL, WLP

Bearish Watch:

HOG, JLL, MDC, AGP, AMG, LAMR, MMM, DRI, SF

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 minor gap up this morning kicked off the week on a positive note, and the buyers continued to emerge for a while to take the indexes right to key resistance zones highlighted here last night.  Those levels proved to be formidable resistance once again, and stocks backed away for the remainder of the day.  By the close, stocks were at their worst levels of the day after having given up their gains.

The current environment remains one in which upside follow through is very difficult to find.  We’ve seen quite a bit of back-and-forth price action, and the frequent reversals are playing a key role in the lack of trust among traders when rallies begin to stall out.  When so many are eager to sell at the first sign of weakness, it makes it tough to expect much else.  Those who are long have felt enough pain that they’re quick to raise cash when in doubt, and of course the bears are anxious to remount shorts into rallies, combining for plenty of selling pressure.

So, the trading ranges are intact for another day, and that’s the most important thing to take from today’s action.  Key levels were validated again today, so we’ll continue to focus on them heading into tomorrow’s session.

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

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: NBR, ADSK, SDS, QID, FAZ, NSC, RIG, DLB

Swing Trading Candidates:

WHR has bounced in recent days, but along the way the finishes have been weak and the volume hasn’t been impressive.  This stock is already in a downtrend, and appears to be stalling out here after this bounce.  I’m eyeing the lower rising trend line at $97.70 for a break to signal a short sale.

Chart courtesy of StockFinder

MAN is starting to stall out after a bounce from the recent lows, and could easily turn down again.  A break of the rising trend line at $43.50 will be my signal to short this one.

Chart courtesy of StockFinder

Bullish Watch:

GOLD, VMW, IT, GIL, UNG, SDS, QID, HSY, NTRI, CAL, RBCN, VRX, FAZ, GLD

Bearish Watch:

VMC, BIIB, DO, JOE, RL, WHR, FSLR, MDC, HD, CSTR, NBL, NUE, GNK, TEX, DISCA, NSC, DLB, NBR, AMG, LAMR, FTI, MAN, ROK, QCOM, VFC, MMM, CSCO, ADSK, RIG, ESI, ATI, 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