Good evening StockBandits!

The major averages climbed carefully from a shaky start on Friday to settle into a trading range for the bulk of the session.  In the final hour of the day, stocks caught a bid to take them to their best levels of the day, capping off yet another very interesting week of trading.

Reversals have quickly become the norm for this market, and last week was no exception.  With the early portion of the week picking up where the previous one left off, we saw some heavy selling pressure on Monday.  The indexes were able to find buyers in the support zone near the late-May lows on Tuesday, and from there turned higher with a big rally on Thursday and some late follow-through on Friday to go out at their highs of the week.

There’s plenty of day to day movement and overnight movement lately, but overall the market has settled into a wide and sloppy trading range in recent weeks.  Traders on both sides of the tape seem equally distrustful of the moves, and rightfully so with all these reversals, which is also prompting rapid shifts of direction once momentum stalls out.  The buyers are aware of just how difficult it’s been to see lasting upside, and the shorts are mindful of the steep spikes which tend to come within market corrections.

The week ahead should be interesting as well, so we need to bring our best.  This isn’t a time for bold predictions or getting glued to an opinion, because in trading ranges, anything’s possible.  In the bigger picture, the market remains in a correction phase, and no technical proof has yet emerged to dispute that.  So, cash is nice to have on hand, as is a flexible opinion, because this market is likely to have a few more tricks up its sleeve before things really smooth out.

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: GOLD, UNG, MED, FCX, RL, FLS, MHK, HD, AZO, XEC, SM, HAIN, JLL, BIG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AKAM, NFLX, DECK, LVS, APKT, GOLD, RGLD, AZO, NTAP, DTV, ARBA, VMW, IT, XEC, GIL, UNG, PANL, AMR, LOOP, VRSN, SM, GSIC, HAIN

Bearish Watch:

BIIB, VMC, MED, JOE, HOG, FCX, RL, JLL, VNO, PCP, XHB, AXE, WHR, FLS, GXDX, BIG, MHK, FSLR, MDC, CAT, HD

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 poor finish yesterday pointed to possible downside follow through today as the indexes struggled to hold support zones, and particularly given all the big moves (mostly to the downside) we’ve seen in recent weeks on Thursday.  However, today we saw a big opening gap to the upside, which was built upon as the day progressed, leaving the indexes with 2-3% gains by the end of the session.

If this market is anything right now, it’s fickle!  Reversals have been the norm, both on an intraday basis, and on an overnight basis.  That’s keeping traders of all styles and timeframes very much on our toes, as literally anything is possible right now.

Lately I’ve mentioned a number of times that this market could rip either way on any given day, due to the persistent weakness we’ve seen (promoting additional downside), and due to the sidelined bulls and shorts needing to cover (promoting upside spikes like we saw today).  That’s still the case, although today’s bounce leaves something to be desired for the bulls.

The lack of strong volume accompanying today’s bounce makes it somewhat suspect, so for the moment all we know is that a bounce is taking place from support within a short-term (but very wide) trading range.  Needless to say, it’s a time where the sidelines aren’t a bad place to be, and quick flips are about the only kinds of trades to be making until some clearer signals occur such as some lasting strength or another breakdown.

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: XEC, PANL, HAIN, VMW, APOL

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

TIE, CRM, SM, GSIC, QCOR, VMW, XEC, AGP, PANL, LOOP, VRSN, HAIN

Bearish Watch:

VMC, AXE, MSFT, SHLD, LPS, BIG, ESI, APOL, CREE, URS

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 a while today, it looked as though yesterday’s afternoon bounce might evolve into something more meaningful as the indexes rallied well into positive territory by mid-day.  However, a pullback from there was unable to find buyers, and ultimately morphed into an all-out reversal.  The market gave back all its gains, finishing negative on the session after a weak effort on the part of the bulls.

Failure to find upside follow through is nothing new for this market, as that’s been the norm for a number of weeks now.  What’s interesting though is that the NAZ and S&P 500 in particular each reclaimed short-term support levels temporarily today, but finished back below them.  That confirms those levels yet again, this time from below, so we’ll continue to monitor them in the days ahead.

As for what’s next for this market, the fact is that anything’s possible.  Conditions are certainly weak, so we could see another leg lower from here now that support has been broken and tested (with a failure).  However, we must also respect the potential for a bounce to come along, as corrections do have rebound phases that don’t have to announce their arrival.  So, this is still a tricky spot where flexibility is key and timeframes should be kept short.

All these frequent reversals are keeping the charts sloppy right now, which places a premium on high-quality patterns.  Stick with those, and it’ll remove a lot of noise which so many other stocks are dealing with right now.  My plan for tomorrow is to stick with day trades, and I’m 100% cash tonight after closing out the last of my recent swing trades today (details in the Hit List post).

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: CSX, MA, ETN, QCOM, CREE

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DECK, SWN, NFLX, AGP

Bearish Watch:

MON, MOS, BEN, MEE, GPN, DRQ, CSX, MA, ETN, APOL, QCOM, CREE, ONXX

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!

Morning weakness led to a test of the May lows in each of the major averages as key levels recently highlighted here were challenged.  The buyers stepped in to offer support, at least temporarily, creating an upside reversal with some afternoon strength which lifted the market well off its worst levels of the day.  By the closing bell, the DJIA had chalked up a triple-digit advance, although the NAZ remained in the red.

It’s too early at this point to declare a turning point for this market, because one day held at support does not a bull market make.  What we do know is that the market had declined considerably from Thursday’s high of last week, and it was likely due for a bounce.  With key short-term support levels having been approached, it was a logical spot for bargain-hunters as well as shorts who needed to cover to step in.  Whether we see any lasting follow through from here remains to be seen, but for the time being, support is being respected.

With this market so capable of making a big move in either direction from here, and with so few high-quality chart patterns available tonight, my game plan for Wednesday is to keep short timeframes for new trades.  This is definitely a market for the nimble, so tight stops and quick profits are the name of the game for those venturing into the fray.  Maintain high levels of cash here, and wait to see if this market is able to build on the bounce which started this afternoon.  If a lasting rally is to take place, we’ll see a pullback after the initial bounce which will offer much better entries in terms of defined risk.

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: TD, SMH, CSX, OII, QCOR, UNG, AMR, DECK, SWN, XCO, MA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

QCOR, UNG, NGD, XCO, AMR, ALK, HSY, CXO, DECK, SWN, CRK

Bearish Watch:

GPN, DPZ, BIG, DRQ, GMCR, MA

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The market flirted with positive territory a couple of times this morning, gapping slightly higher to begin the day and soon after bouncing to reach new highs on the session, only to reverse hard and chalk up another significant decline.  For the NAZ, it was a 2% loss, while the S&P 500 and DJIA each gave up slightly more than 1%.  Nonetheless, support was taken out in each index, reminding all that we’re still in a corrective phase.

I’ve mentioned a number of times here lately that upside follow through has been virtually nonexistent, as well as upside volume.  The inability of this market to put together even a decent bounce that lasts longer than a day has been the biggest warning flag of late, and it has kept me holding some short-sided exposure.  Hopefully even if you don’t trade the short side, you’ve long since raised cash and avoided the pain which so many are feeling.

At some point, the tide will shift again and stocks will rally.  Until that happens, the market remains in corrective mode and extreme caution should be exercised when considering trades on the long side.  We’ve seen a significant 2-day decline, and while more weakness could arrive tomorrow, it’s an equally important time to stay careful with new short sales.  Relief bounces have been sudden when they have arrived in recent weeks, so timing remains important even when trading in the direction of the prevailing downtrend.

For tomorrow, there sure aren’t many setups out there worth noting after a big rally last Thursday and then a steep selloff in the 2 sessions since.  I’m eyeing some trades, but keeping a pretty focused list until more quality bases emerge in the charts.

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: NGD, PBR, GPN, GMCR

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NGD, EGO, THOR

Bearish Watch:

OII, MON, DWA, MAC, OIH, PBR, LPS, ATW, SLB, DO, MHP, FTI, SII, TRLG, NE, RIG, BIG, GPN, DPZ, NOV, DRQ, HES, GMCR, APC

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A highly-anticipated jobs report on Friday morning failed to impress, and overnight jitters from Europe were further exaggerated ahead of the opening bell.  The opening gap left the indexes 2% lower, and a feeble attempt to fill the gap ultimately failed after the first hour of the session.  From there, stocks continued their decline in a steady fashion, trending lower throughout the day as the major averages posted losses in excess of 3%.

Friday’s weakness brought the lowest closes for the DJIA and S&P 500 since this correction began, although intraday lows from May weren’t penetrated. The NAZ was the exception, holding above the lowest close in May by about 1%.  Each of the major averages saw increased volume on the decline, although volume remained below average.

Upside follow through continues to be the thing this market is lacking, and even though some support zones have become evident on the daily charts, there’s certainly no guarantee that they’ll hold.  Some mixed signals are coming from the indexes, but the common thread is that they’re each struggling to show strength on anything but an occasional basis.  Each bounce is still getting sold, which is a reminder that added caution is still best (just as it has been for the past several weeks).

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: SNDK, AZO, MAC, FTI, ATW, BIG, MHP

Swing Trading Candidates:

BIG turned lower on Friday and now is resting on key support after several weeks of basing action.  This one has ample room to move lower if it breaks support, so I’m watching for a breakdown at $33.90 to initiate a short sale.

Chart courtesy of StockFinder

MHP isn’t far from support within this descending triangle pattern, so I’m on the lookout for a breakdown any day now.  My trigger for a short entry will be the $26.90 level.

Chart courtesy of StockFinder

Bullish Watch:

SNDK, AZO, QCOR, ANV, ERY

Bearish Watch:

DRI, OII, ADM, CF, MON, DWA, CECO, SHLD, MTB, ITRI, PII, MAC, OIH, PBR, LPS, ATW, SLB, CCJ, DO, MHP, HAR, MEE, F, LLL, FTI, SII, TRLG, PWRD, TDW, NE, CEDC, RIG, BIG, ESI

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 positive start this morning sent the indexes higher, although a mid-day dip erased those early gains.  Some afternoon strength did return, taking the indexes back into positive territory, but the senior indexes lagged the NAZ with only modest gains.  In the end, the market finished green, posting the first consecutive advance in several weeks.

Although it’s encouraging to see recent support hold, as well as back-to-back advances, the buyers still are acting hesitant to assert themselves.  That’s evident not only in the magnitude of the rallies, but in the brief nature of them, and particularly in the lack of upside volume.  That points to limited participation in the buying, which suggests there isn’t a lot of fuel propelling the rise.  Nonetheless, support is still holding for now, so it’s an environment which calls for abbreviated timeframes due to the lack of follow through we’re seeing in either direction.

As we head into the final session of the week, we have a big jobs report tomorrow which could easily set the tone for the day.  Therefore, my focus will be on day trades while maintaining my existing swing positions (see the Hit List post for details).

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: NAV, QCOR, OII, PEI, ADM, SNDK, IT, ORLY, DRI, CF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

UHS, NR, SNDK, AZO, NAV, QCOR, DTV, VMW, OVTI, IT, PAR, ORLY, UNG, QSFT, DGIT

Bearish Watch:

DRI, OII, ABX, PHYS, PEI, ADM, CF, MON, DWA, MOS, MCO, CECO, X, FO, SHLD, MTB, BEN, GLD

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 indexes had approached support with Tuesday’s selloff, but the buyers returned today to defend those zones, taking the indexes steadily higher throughout the session to post solid gains of more than 2% across the board.  The NAZ led the way by making a multi-day high, while the S&P 500 and DJIA each approached the upper end of their 8-day trading ranges.

Two things have been severely lacking in this market lately – upside follow through, and heavy upside volume.  While we will need to wait a couple of days to see if follow through arrives, today’s upside volume was evident once again with very underwhelming levels.  If volume is the fuel that drives prices higher, then this market is in need of a fill-up.  Nonetheless, support zones have been defended for now, so let’s see if the buyers can make a rare repeat appearance tomorrow.

In looking through the charts this evening, there still are a very limited number of setups out there to choose from.  We’ve seen back-and-forth directional movement in recent days within this range, so the lack of follow through and the light volume is keeping things tricky for now.  My plays for tomorrow are day trade candidates, so I’ll stick with my existing swing positions for now before looking to add any more overnight exposure.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday. Thank you for your patience with this evening’s late report as I’ve been tending to some other matters.

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

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:

CSTR, ORLY, LCC, UHS, SNDK, PII, PAR, DTV, AGP, ARBA, DLB, VMW, OVTI, IT, NTAP

Bearish Watch:

ABX, MON, MCO, EL, SHLD, ATK, V

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The holiday-shortened week began on a poor note this morning, but the buyers stepped in to offer some initial support.  That lifted the indexes well into positive territory, but only temporarily.  The market then drifted back around the flat line for much of the session, before weakening in the final hour to make the ultimate difference.  In the end, the indexes each shed more than 1% by the closing bell as stocks limped across the finish line.

Today’s poor performance leaves the indexes perilously close to recent support zones.  Although those zones have been penetrated on an intraday basis, the indexes have been able to consistently close above the early-May lows.  Another session like today and those levels would be in jeopardy, which in turn could leave this market headed once again for lower levels in search of some lasting support.

I continue to view the long side here with skepticism, primarily for the fact that this market has struggled so bad to bounce for more than a day at a time.  Whenever bounces are still getting sold consistently, it’s typically a signal that the long side should be played with extreme caution.  Tonight I’m carrying 3 overnight positions…2 on the short side, and 1 long which has had its stop tightened.  I’m eyeing shorts for tomorrow as day trades, and will remain cautious with new buys until this market is able to prove itself more capable of holding onto gains.  Right now, it’s still a pretty slippery slope.

For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.  Thank you for your patience with this evening’s late report as I’ve been tending to some other matters.

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

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:

BGZ, SMN, SKF, VXX, FAZ, LCC, QCOR

Bearish Watch:

CEDC, CF, MON, F, MCO, MTB, BIIB, MFE, CECO, MHP, EL, SHLD, ATK, V, QCOM, ADSK, VECO, OC

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week really proved to be an interesting one, as prices moved all over the map.  We saw some big overnight gaps, some of which were filled quickly, and some which remain unfilled.  Intraday reversals were commonplace, just as they’ve been in recent weeks, and then we saw a weak finish to cap off what’s been a very poor month for the indexes as they lost about 8% across the board.

The encouraging thing right now is that some support is becoming evident on a closing basis, although the buyers still have a long way to go to prove that they’ll stand behind this market.  Continuation – and particularly upside continuation – has not been a common thing lately for this market.  For example, the S&P 500 went the entire month without having 2 consecutive advances.  That’s not the kind of market which can be fully embraced on the long side.  At the same time, the corrections have been swift and sizeable, which makes it tough to get aggressively short when the bulk of the easy money has likely been made on the short side.

All of these factors really reinforce 2 things to me.  The first is that timeframes need to be generally brief right now, at least until some follow through becomes a bit more common.  The second is that selectivity is crucial right now.  With so many sloppy charts to choose from, there really aren’t many high-quality plays to be found at the moment.  That narrows down my watch list considerably, and that’s quite alright in a messy environment like the one we’re in.

Heading into Tuesday as we start this 4-day trading week, there are a handful of trades I’m eyeing, as well as some charts I’m hoping to see some basing in.  I’ll outline them 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: WLL, WAT, CMI, VXX, V, MCO, MTB

Swing Trading Candidates:

MCO has been trending steadily lower for many weeks now, and more recently has put in some rest without a bounce attempt.  This stock closed right at support on Friday, so I’m on watch for a break in the coming days.  I’ll be going short this stock if it undercuts the $20.25 level, as there’s still room to correct further if short-term support gets broken.

Chart courtesy of StockFinder

MTB pulled back from its recent high to test an important level for this stock which has served as both resistance and support in recent months.  With the short-term trend down, I’m watching for a possible break of support at $78.50.  If that break occurs, I’ll be going short as prices head lower in search of buyers.

Chart courtesy of StockFinder

Bullish Watch:

VXX, VCI, UHS, REGN, APKT

Bearish Watch:

MCO, BIIB, ABX, DO, CNX, V, VAR, PCLN, COV, MA, AXE, MTB

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