Good evening StockBandits!

Last night I cautioned that I’d avoid the long side after such a large, V-shaped bounce, and today’s market action validated that stance.  We saw 1% declines across the board today, as early intraday trading ranges failed to hold late in the session when sellers re-emerged to leave stocks on their lows by the closing bell.

The daily charts have now bounced big, stopped shy of prior support (turned resistance), and now are starting to head lower.  This could prove to be a head-fake dip before a bounce resumes, but at this point the buyers have stepped aside and prices appear vulnerable to another decline.  I remain unwilling and uninterested in making new buys here (for anything but inverse ETF’s, which are included in tonight’s video), so my focus here is on the short side due to all the bearish charts and failing bounces.

I won’t be day trading on Friday, as explained in tonight’s video, but there are a handful of swing trades I’m setting up for potential plays.  Volatility has returned to the market, so although even a brief rest would go a long way towards creating some new bases, we may not get much of a rest since this market is on the move so much lately.  Needless to say, interesting times of opportunity are upon us after a very quiet rally.  Make it a great Friday!

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: VXX, FAZ, TWM, SDS, QID, BP, LLL, EL, UNT

Swing Trading Candidates:

LLL sold off hard recently and has only managed a partial bounce since then.  That has created a bearish rising wedge on the daily chart, setting up a well-defined entry for me on the short side.  A move below the lower rising trend line of the wedge at $89.40 will trigger a short sale for me (stop & target levels are on the Hit List post).

Chart courtesy of StockFinder

EL rolled over after a failed breakout and in recent days has bounced with diminishing enthusiasm.  This created a bearish rising wedge, which if broken at $63, will trigger a short sale for me.

Chart courtesy of StockFinder

UNT sold off sharply last week and has bounced since then on diminishing volume only a portion of the way back up.  A small rising trend line of support has emerged over the past few days, and if that gets broken at $42.20, I’ll be shorting this stock.

Chart courtesy of StockFinder

Bullish Watch:

BGZ, SKF, SMN, VXX, FAZ, TWM, SDS, DXD

Bearish Watch:

CF, MON, F, LCAPA, PBR, DWA, MTG, AGU, POT, BP, BLK, DO, LLL, EL, UNT, AMG, AVB, PCP, XHB, FO

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 bounce we saw on Monday and Tuesday carried over yet again into today’s trading.  Early strength was built upon throughout the session, leaving the indexes at their best levels of the day by the closing bell.

Just as last week’s downside move appeared to be an overreaction, this bounce is shaping up in much the same manner.  Prices have recovered a huge amount of what was given back last week, but volume is declining across the board.  Toss into the mix the fact that broken support could easily serve as resistance going forward, and it leaves me extremely cautious here when considering the long side.

I don’t make market predictions because I believe our role as traders is to respond to whatever comes along (rather than initiate a position and then hope), so I’ll refrain from doing so here.  I will say though that I have no interest in making buys at this juncture, if for no other reason than a pullback or some rest is becoming increasingly likely.  At some point, traders who got caught in last week’s downdraft may wonder if this is a second chance to do a little selling, and that could easily put a speed bump in the path of this bounce.

So heading into Thursday, I see a handful of plays which interest me for day trades on the short side.  If they trigger, I’ll take them.  If not, I won’t be forcing anything.  We should be able to get more aggressive with the swing trades again once we see even a brief rest, but so far we’ve seen nonstop downside followed by nonstop upside.  ‘V’ reversals are nearly impossible to catch, so I’m being patient here until some better conditions arrive – and they will.

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: BP, DO, EL, RYL, OSG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NTRI, MGA, ADS, ZION, SFI

Bearish Watch:

MON, ROST, SQM, BP, DO, ATW, LLL, EL, UNT, RYL, OSG, RDC, ATLS, BHI, BAX

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 the markets in crumble mode last week and in massive-relief-gap mode yesterday, some indecision seemed fitting today and that’s just what we got.  A morning gap to the downside seemed small compared to recent days, although it was sizeable compared to the minor gaps we were seeing just a couple of weeks ago.  Nonetheless, it was filled as the market ran well into positive territory today, only to stumble in the afternoon and finish not far from Monday’s closing levels.

Despite the lack of progress, today’s bar was definitely helpful for the charts of many individual stocks which are badly in need of some rest and consolidation.  More time is needed to really create some high-quality patterns in most stocks, but every day of indecision counts in an environment where prices have been zipping back and forth with tremendous velocity.

The inability of the indexes to hold onto their gains left the daily charts with the appearance of a failed bounce in progress.  Prices have only recovered partially from last week’s damage, and former support is still above current levels (now resistance).  Combine that with the fact that many traders were simply caught off guard without a chance to sell into the extreme weakness, and the case for selling rallies for the next little while can easily be made.

Heading into tomorrow, I see a handful of plays which interest me, but only for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk. Many stocks are beginning to consolidate here, but most of them still need additional time before they’re ready for multi-day plays (as determined by pattern maturity and the ability to manage risk appropriately on an overnight basis in a volatile environment).  My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this. Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

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!

–

Video Stocks Discussed: NTRI, MTG, BP, RYL, HP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NTRI, NFLX, KERX, SSRI, CYN

Bearish Watch:

MON, MEE, F, MTG, DCTH, BP, DO, ATW, LLL, UFS, BEAV, TWC, EL, UNT, ACL, GS, APOL, RYL, BKE, PH, AMG, HP, RDC, HSNI

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!

Encouraging news out of Europe regarding financial relief sent stocks screaming higher this morning, with some 90% of the day’s gains coming on the opening gap.  We saw the NAZ gap 100 points, the S&P gapped 50, and the DJIA gapped roughly 400 points.

What’s somewhat frustrating (or comical) about moves of this magnitude is that in order to participate in today’s upside, you had to do one of 2 things….(1) buy into extreme weakness prior to the weekend and hope you timed a bounce perfectly, or (2) stay long last week during the utter carnage we saw and endure all kinds of pain before getting a little bit of your money back today.  No thanks!

I was pleased to be in cash at the end of last week, and although I didn’t catch today’s gap up, I also happened to make money last week while so many were getting pounded by the relentless selloff.  Everything in trading is a trade-off (no pun intended), but for those of us who take it seriously, risk absolutely must be managed.  The fact of the matter is that in the current environment, that’s just not very possible on an overnight basis.  That means at the moment it’s a day trader’s market, so if that doesn’t include you, don’t worry.  The dust will settle and we’ll see some opportunities surfacing again, but right now defense is the name of the tune, so the sidelines are a perfectly alright place to be.

Heading into tomorrow, I see a handful of plays which interest me, but only for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk.  Today was a perfect example of that. My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this. Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

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: ATW, LLL, ABX, SSRI, F, MON, CAM, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

IAG, KERX, SLW, ABX, SSRI, ANV

Bearish Watch:

CF, JOE, MON, F, AGU, CAM, BP, APC, RIG, 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

Happy Mother’s Day StockBandits!

Last week we saw recent concerns validated as the indexes broke down very hard from their recent high-level trading ranges.  Volatility had been picking up, but once short-term support was broken, the selling really accelerated.  That opened the door for waterfall-type downside moves, producing index declines on the week between 5-8%.

Thursday’s action was an all-out crash, as there were virtually no buyers in the face of a massive selloff.  Although prices were able to recover slightly from the worst levels set on Thursday, we still have yet to see a 1-day bounce.  Ending the week with 4 consecutive declines of significance really squashes the confidence the dip-buyers have exhibited for such a long time.  Clearly, the landscape has changed, both from a technical and a psychological perspective.

With that being the case, I cannot stress enough the importance of caution here.  While prices for most stocks are far lower than they were just a few days ago, it doesn’t mean they cannot go lower.  At the same time, the nonstop selling we’ve seen makes this a high risk spot for initiating short sales for anything but quick trades, simply because the prospects for a relief bounce are increasing by the day.  Suffice it to say, this is a time where cash is a great thing to have on hand (as I’ve noted here several times recently), and where you’d better be on your toes if you’re looking to participate in this tape.  The sidelines aren’t a bad place to be for a couple of days, so if that’s where you feel most comfortable, that’s entirely fine.

Heading into Monday, I see a handful of plays which interest me, primarily for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk.  My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this.  Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

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!

–

Video Stocks Discussed: ANV, SLW, SWC, CAM, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ANV, IAG, SLW, DM, CRS, VCI, EGO

Bearish Watch:

UTHR, HAR, SOHU, GMCR, JOE, CF, CLF, SWC, IVN, CAM, BP, RIG, CECO

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!

Tuesday’s weakness carried over into today’s action, with the NAZ staying red all day while the S&P 500 and DJIA were only able to go briefly positive.  In the end, more declines were posted as traders again stayed away from the buy side following technical breakdowns from the recent trading ranges.

Although the market has broken down on a technical basis and appears to be in the early stages of a correction, in the very short term this is a difficult spot to be initiating new short sales.  We’ve seen a solid 2-day decline which has damaged many individual charts, and it may very well be that some kind of relief bounce is in order soon.  That isn’t at all to say that prices can’t continue lower first, but simply that I’d prefer to see some attempt at a bounce before looking to add short exposure.  If this market is topping, it is likely to be a process with some failed bounce attempts along the way, so let’s see if the buyers attempt to step in soon.

For Thursday, I’m eyeing a few day trade candidates, but there really isn’t an abundance of good charts to choose from tonight.  A little rest or even a minor bounce would greatly aid the construction of individual charts, allowing some short-term bases and patterns to further mature and bring along with them many more candidates for trades.  At the moment, the short side appears to be higher risk after this selloff, so I’m going to instead focus on a few bullish setups for quick trades on Thursday.

I will be traveling tomorrow afternoon and most likely will not be able to put out a full newsletter on Thursday evening.  If it turns out that I am able to, then I’ll be sure you are notified via Twitter and email. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Thursday.

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 on Thursday. 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, FCH, NFLX, IAG, MBI, GG, JDSU, SKF, VXX, FAZ, ISLN, PNK, CLP, ABX, DNDN

Bearish Watch:

PFCB, GMCR, MTG, CSIQ, HNT, CAM, BP, APC, RIG, CAKE, JPM, COG, DO

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The major averages started off this morning on the wrong foot, slipping early to fall back toward the lower end of their 3-week trading ranges, only to undercut key short-term support zones by mid-day.  Unable to recover, they simply lingered near their lows for the rest of the session, finishing not far from their worst levels.  The point losses were the biggest seen since February 4th, one day before the most recent upside run began.

The most important event of the day was the fact that each of the indexes closed beneath support zones.  That translates into a downside resolution from the high-level trading ranges, and along with the added recent volatility, suggests that a change of character may be underway.  Turning points tend to more often be a process rather than an event, and the past few weeks have seen no follow through in either direction.  There have been solid rallies followed by downside reversals, and vice-versa – all of which point to some increasing indecision of late.  I’ve noted my reasons for caution here for the past week, and today’s move validates them.

I’ve also mentioned here that if the market is in the process of a turnaround, there will be plenty of time to get on board for trading the short side – that the initial move doesn’t have to be caught.  I still feel that way, and now I’ll be watching for some failing rallies to short sell.  In the coming days, I suspect we’ll see some bounce attempts which aren’t able to reclaim key levels, or which are accompanied by poor upside volume, and those will be clues that those stocks are the ones to focus short-selling efforts on.

I will say I’m very glad to be in cash for the past several days, not only with the lack of follow through but with today’s breakdown.  If you haven’t raised cash already, this is a good time to consider doing so.  It isn’t too late, because if the market corrects further from here, significant profits can be given back with ease.

By the way, I’m doing some travel the next couple of days but will return to the video format later this week. For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Wednesday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

I’m eyeing the following setups for multi-day plays if they can cross the levels specified here.  The Hit List post outlines my trade parameters for these plays, including entries, stops, and targets.

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Day Trading Candidates:

These are the trades I’m eyeing for potential plays on Tuesday. 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:

LLEN, BID, EQR, MBI, MHR, JDSU, SKF, VXX, ISLN, ADS, FAZ, SIRO, PPS, CPO

Bearish Watch:

TIE, SOHU, PFCB, CAKE, CMG, CSIQ, AGU, PWRD, MTG, GDP, UIS, MTW, PRU, CEPH, F, AIG, FAF, MEE, BG, MOS, MON, JPM, BAC, DAL, AMR

The Hit List post will follow shortly with my trade levels for the swing trade candidates I’m looking to trade.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

With the indexes having sold off to reach short-term support zones within the recent trading ranges last Friday, the early portion of this week was set to be a potentially important time.  Further weakness could easily have brought about a breakdown from the trading range, as well as some accelerated selling pressure with sell stops resting beneath the range getting triggered.  However, the alternate route was a bounce back up to into the range, which we saw today.

Merger news between airlines UAUA and CAL grabbed the headlines early, and as M&A tends to do, it gave traders some comfort.  The initial strength was built upon as the day progressed, leaving the indexes with some breathing room between tonight’s closing prices and the lower boundaries of the trading ranges.  That means tomorrow could quite easily be a day of rest and indecision, as we’ve seen most of the decisive moves within this range get followed with exactly that.  Nonetheless, support was defended, and the ranges were able to persist for another day.

This market still has yet to break out, which is important to remember on a strong day like this.  Follow through hasn’t been the strong suit of this market for the past 3 weeks, as both selloffs and rallies have merely led to short-term reversals.  Such is the nature of these high channels with elevated indecision.  My capital remains uncommitted for anything but the shortest of timeframes right now, until either some setups emerge which are too good to pass up, or until this range is left behind with a market move one way or the other.  One or both of those conditions will change soon, so I’m looking forward to having more swing trades come available on the heels of some great trades during April.  Until then, I’ll take what the market has to offer.

By the way, I’m doing some travel the next couple of days but will return to the video format a little later this week.  For tonight, my notes are on the charts below for index levels and potential trades I’m eyeing for Tuesday.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

These are the trades I’m eyeing for potential plays on Tuesday.  I will not be holding these overnight, and will wait for these levels to be cleared before entering trades.

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

R, VMW, HOG, NFLX, SKS, FFIV, TPX, MGM, MBI, MF, LPX, TRN, MHR, JDSU, TOL, SPF, KBH, ISLN, KNL, GRT, CPHD, ADS, USG, LMT, ADSK, MMM, BC, PNK, GIL, MSPD, SCSS, HXL

Bearish Watch:

SOHU, AIG, F, AA, RTI, PBR, CENX, ADM, UIS, BG

There will be no Hit List tonight as we are 100% cash in terms of swing trades. Once we have open positions again on an overnight basis, Hit List posts will resume.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes trended steadily lower on Friday, closing out the week with another day of distribution.  We saw the same thing take place on Tuesday, although some Wednesday stabilization and a Thursday bounce seemed to temporarily erase concerns.  However, stocks headed into the weekend with buyers notably absent.

We still have trading ranges in the indexes (which we’ll take a look at shortly) that deserve our respect until broken, but there are a few hints that are worth taking notice of right now.  The first is the added volatility we’ve been seeing.  Not only is the VIX on the rise, but we’re seeing wider day-to-day trading ranges, and that’s a shift from the quiet upside which was so prevalent recently.  Another thing I’m noticing is the increased frequency of distribution days.  Two weeks ago on a Friday, stocks ended the week with steady, heavy selling.  That also happened this past week on Tuesday & Friday, and that action gives a bit more of a toppy look to the daily charts of the indexes.  An actual breakdown will have to occur before there’s a technical reason to truly sell this market, but for now there are plenty of reasons for caution.

Heading into this week, we have a number of companies still reporting earnings, placing great emphasis on the timeframes for which new trades are initiated.  I see several setups I like here, but will as usual avoid scheduled fundamental news like earnings, so for Monday I’ll be focused on shorter timeframes.  Let’s take a look at the index charts and then get to some individual names of focus for Monday’s trading session.  By the way, I’m doing some travel the next couple of days but will return to the video format a little later this week.

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

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

NONE TONIGHT.

Day Trading Candidates:

GET has been holding up well and has been able to put in some rest in recent days.  Well-defined resistance is just overhead, so if this one can push through the $34.65 zone on Monday I’ll be a buyer for a day trade.  Earnings are due out on 5/4, so this will only be a day trade for me.

Chart courtesy of StockFinder

GFI is just now pushing through previous highs and has some more room to run higher if price can accelerate.  I’ll be a buyer for a day trade if this one can clear $13.60 on Monday.  Earnings are scheduled for 5/7, so this will only be a day trade for me.

Chart courtesy of StockFinder

EXH has pulled back slightly within its uptrend, and has done so on light volume.  That points to very little selling taking place at these levels, opening the door for another push higher soon.  If this one can clear $29.60 on Monday, I’ll be a buyer for a day trade.  Earnings are scheduled for 5/7, so this will only be a day trade for me.

Chart courtesy of StockFinder

TIE struggled to really break out a few weeks ago as it contended with prior resistance.  That has led to what now appears to be an inverted saucer-like pattern, which may be a topping process for this stock.  Prices are now resting on short-term support, which if broken at $15.30, would open the door for more downside.  Earnings are due out on 5/4, so this will only be a day trade for me if it triggers on Monday.

Chart courtesy of StockFinder

MTW sold off quickly a few sessions ago, and since then price has struggled to bounce.  There’s a small rising trend line which is starting to emerge on this chart, which if broken, would allow for more selling.  I’ll take it for a short sale as a swing trade it if undercuts that trend line at $13.90.

Chart courtesy of StockFinder

LBTYA rolled over recently and has been unable to bounce.  Instead, this chart now has a bear pennant pattern which would be confirmed with a break below the $27.20 level.  I’ll be looking to short sell this stock as a day trade if that lower trend line gets broken, but with earnings due out on 5/6, I will not be holding this one overnight.

Chart courtesy of StockFinder

There will be no Hit List tonight as we are 100% cash in terms of swing trades. Once we have open positions again on an overnight basis, Hit List posts will resume.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

An opening gap to the upside started the day off on the right foot, and stocks never looked back.  Instead, they trended higher for the remainder of the day, handing the major averages 1%+ moves across the board.  Volume held up well, and it truly was a strong day no matter how you measure it.

What’s notable though is that we’re still range-bound.  Tuesday’s decline was a nasty one, but it’s since been pretty much forgotten.  Such is the case when prices are bound by trading ranges.  Today’s positive tone was nice, but if the range persists, it will soon be forgotten as well.  The point I’m making is this: embrace strength or weakness once we exit this range.  Until then, more indecision is to be expected in between the boundaries of the recent highs and short-term lows (as I noted last night here).

Heading into Friday, with the indexes still not back on the run and ahead of the weekend, I’m looking to day trade.  I fully expect to see more swings setting up soon, but the best patterns I see right now are stocks sitting very high in their charts, and those haven’t paid the best.  I’m still willing to take them for trades, but only for single-day moves.  Hopefully next week we’ll get some more patterns emerging which call for multi-day plays.

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!

–

Video Stocks Discussed: THC, SHLD, GET, CPHD, X

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

GRT, THC, NFLX, R, HSY, CSTR, PHM, HOV, SPF, USG, TOL, LCAPA, SUSQ, FFIV, MGM, TRN, APPY, URI, ISLN, SHLD, SNDK, ROVI, GET, DHR, CPHD

Bearish Watch:

CAGC, CRL, AIG, X, RINO, BG

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