Good evening StockBandits!

Tuesday’s selloff saw no follow through today, as instead stocks were able to rebound – modestly.  The NAZ finished higher by less than a single point, while the S&P 500 and DJIA both recovered about 1/4 of what they gave back yesterday.  Hardly a relief bounce, I know, but the buyers were able to stop the bleeding.

With today being a Fed day, it would have been no surprise to see some more lively action – in either direction.  But it was not to be, and ultimately we saw the indexes chalk up a day of rest after yesterday’s selloff.

I still can’t shake the notion that some shifts are taking place here with the added volatility, elevated volume, and abrupt selloff from new nominal highs made on Monday.  Along with the lack of great patterns available right now, my caution is keeping me focused on the shorter timeframes (day trading) as we head into Thursday.  I do expect to see more swing trades setting up soon, but I’m taking it very easy on the long side and we still don’t have a ton of technical reasons to aggressively short yet.

There are a number of stocks which are starting to build some patterns, which I’ll cover in tonight’s video along with the plays I’m focused on for Thursday.

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: SHLD, ORLY, URI, ISLN, FFIV, KNL, CSTR, ROVI, BIIB

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

KNL, FFIV, CSTR, WMS, AEM, WAL, SA, ROVI, ORI, GFI, SHLD, SNDK, AF, ORLY, NFLX, URI, ISLN

Bearish Watch:

BIIB, MASI, CAGC, UTHR, MEE, CEPH, RINO, MTG

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 gap down on the heels of overseas weakness offered another dip to be bought this morning, and that gap was actually filled.  However, once the indexes had recovered, they weren’t able to hold their ground for long.  Heavy selling kicked in, taking them decisively lower, and this time the dip-buyers failed to appear.  After a modest bounce, new lows were made on the session to mark the 2nd day of distribution on the charts in just the past 8 sessions.

Today’s downside brought about the 3rd attempt at a break of the rising trend line for the NAZ, and this time it stuck on a closing basis.  The S&P 500 and DJIA each also gave up considerable ground, chalking up the biggest percentage decline we’ve seen since February 4th.  The growing volatility of late, along with key technical breaches of uptrend lines, is offering plenty of reason for caution at this point.

I’m in cash, and with this recent rally having gotten somewhat long in the tooth, I’m willing to wait to see if this dip gets bought.  At some point a correction is going to set in, and although we just saw new 52-week highs made yesterday, buying stocks right here seems to hold more potential pain than potential in the short term.

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: AEM, X, MEE, RINO, MTG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

STRI, AEM, GG, SA, FFIV, SUSQ, WAL, POZN

Bearish Watch:

GMCR, CAGC, UTHR, AMLN, MON, MEE, CEPH, BUCY, STT, MOS, X, ADM, GDP, MASI, RINO, MCO, TX, MTG, AGU, POT, IPI, BIIB, 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

Good evening StockBandits!

New 52-week highs set on Friday last week once again struggled to find follow through, as today we saw the market simply stagnate.  The primary character of this market hasn’t been its ability to post a lot of big up days, but rather its inability to move lower.  That keeps things difficult for bulls and bears alike, as short sales get no traction and the buyers get very limited momentum.

We are still right in the thick of earnings season right now, which is also keeping traders primarily focused on individual stocks instead of ‘the market.’  That means much of the activity is centered around individual names, rather than the ‘buy anything’ mentality which often accompanies uptrends.  So until we see some better market-based momentum, it’s a good idea to keep this in mind when it comes to expectations for follow through.

Heading into Tuesday, I’m looking to focus on day trades.  The combination of setup quality I’m finding, along with it being right in the thick of earnings season is requiring a narrower timeframe for my trades right now, so in the video I’ll point out the ones I’ll be watching closely tomorrow.

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: CRUS, STRI, LLEN, GMCR, MTG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CRUS, LLEN, HLX, INFN, OZM, DM, STRI, SIRI, GG, ARBA, CMCSA

Bearish Watch:

RTI, UTHR, CAGC, MON, CEPH, STT, MOS, FCX, MASI, RINO, NTY, MTG, AGU, CSIQ, IPI

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Following the previous week which ended with the biggest decline in more than 2 months, last week we saw the indexes make a complete recovery.  The buyers emerged once again to support stocks on weakness, keeping the pullback shallow and short-lived before finishing the week by making new 52-week highs across the board.

The pace of the uptrend which began in early February has slowed, as price has been hugging the uptrend line in the NAZ for the past few weeks.  However, the uptrends remain intact in each of the major averages.  While many traders are eager to proclaim the end of the rally being near, the fact is that no technical proof has emerged yet to support that notion.  It’s wise to keep a close eye on major levels which may be coming into view as resistance, but predicting a turn is for amateurs and isn’t where the real money is made.  Keep that in mind this week, and always let the charts dictate the plan of action.

Heading into Monday, I see a handful of plays which interest me, primarily for day trades.  The earnings calendar must be noticed right now, as many companies are due to report in the next couple of weeks.  That’s also keeping my timeframe shorter for some of these plays, but once earnings season blows over we should be able to get more aggressive with the swing trades again.  April has been a good month, so let’s close it out in a solid fashion!

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: FSLR, FINL, HLX, GMCR, MTG, ATPG

Swing Trading Candidates:

ATPG saw a key breakout a few weeks ago with some solid upside follow through.  Last week the stock pulled back gradually, but is holding steady.  A move up through the yellow descending trend line could put this stock back on the move for a secondary move higher, so I’ll be a buyer if and when this one clears the $22.80 level.

Chart courtesy of StockFinder

Bullish Watch:

ATPG, CRUS, HLX, NTRI, CBI, MTW, GDP, HXM, RGLD, GE, THC, FSLR, AEM, FINL, SLW, IMGN, TD

Bearish Watch:

CF, GMCR, MON, RINO, NTY, MTG

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!

An ugly open this morning left stocks well underwater to start the day, reversing higher from a triple-digit decline.  Concerns in overseas markets, mixed responses to earnings since yesterday afternoon, and the presence of Obama in NY speaking out against Wall Street in hopes of reform left the tone rather negative.  But once again, the buyers emerged to not only offer support, but turn the tables with positive closes by the end of the session.  The NAZ made a new 52-week high, while the S&P 500 and DJIA each stopped just shy of their recent highs.

‘Amazing’ is probably the best word for the current action, as it seems this market cannot or will not stay negative for more than a few hours.  Shorts are getting their heads handed to them and are forced to cover on a regular basis, keeping a bid beneath the market.  Those with cash on hand have growing confidence with the higher prices we continue to see, and that’s also playing a role in the persistent strength we’ve seen.

At some point we will see conditions change, and a dip will not get bought.  However, it’s not up to us to try to anticipate when that will be.  Our job as traders is to stick to what the charts are telling us, which for now is that the uptrends are still intact.  The higher we go, the more caution is warranted, but we can continue to trade in the direction of the trend until technical proof emerges that suggests otherwise.

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: HLX, THC, JOE, FAST, RINO

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

HLX, JOE, PDCO, WMS, NTRI, LPX, MTW, FAST, HXM, FISV, ATPG, RGLD, DAN, THC

Bearish Watch:

MON, SOHU, RTI, MASI, RINO

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

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last night’s news in tech land left the NAZ gapping higher this morning, but only limited strength beyond the opening bell was seen.  The highs were marked in the first half hour of the day, and although the gap was filled rather quickly, the buyers kept things afloat.  Ultimately, the indexes finished little-changed and with mixed results on the day.

Days like this which seem to be so news-heavy and yet which have such limited movement in the overall market can often be confusing for some.  However, traders can tend to simply focus on individual names in times like this right in the thick of earnings season, making for some lively action in select stocks while the big picture does very little.  Sometimes it’s a market of stocks, and sometimes it’s a stock market.  Today’s action fits the former description.

Tonight many stocks are still trying to build bases on their daily charts, which means I’m again looking at a pretty select list heading into Thursday for trades.  This will change soon, I would expect, but until then I’m looking to grab quick hits and wait for better swing trading opportunities to emerge.  Heading into Thursday, day trades are going to be my focus.

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: APOL, FFIV, MASI, RINO, MON, RTI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

LPX, APOL, FFIV, GBCI, WMS, PDCO, NTRI, SUSQ, CBI, DV, FAST, GMT, AMAT, HXM, JEC, MAS, SMG, FISV

Bearish Watch:

CAGC, CLF, MON, RTI, SPWRA, MASI, FE, RINO, TX

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!

Perhaps determined to prove that yesterday’s rebound was no fluke following Friday’s weakness, today the buyers pushed each of the major indexes higher.  All of them stayed beneath last week’s highs, although not by much, making another breakout a distinct possibility going forward.

On a week during which big-name earnings are the primary focus, traders were a bit less active today, but apparently unafraid to proceed without waiting for all the news to arrive before putting more cash to work.  The S&P 500 reclaimed its (formerly) broken trend line, leaving it just a few points from last week’s highs.

Clearly, the uptrends are still very much intact, and that’s worth noting.  A hiccup like we saw on Friday so late in a trend like this tends to get many contrarians talking about that being the end.  As I’ve noted here, a true change of trend isn’t likely to happen in a day – it’s far more likely to be a process.  Lower highs and lower lows will need to emerge, and as of yet, we simply don’t see that in the technicals.

Although I do see a lot of stocks working on new bases over the past few days, very few of them appear ready to go, and that leaves me with a pretty thin trading list heading into Tuesday.  With an upside gap looking likely here in the after hours, exercise some caution early in the session tomorrow and pay close attention to how the gap gets treated.

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: FO, SUSQ, AMAT, FFIV, FAST, APOL, CBI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PDCO, COL, CREE, FO, JOE, AIG, F, SANM, WMS, NFLX, BZH, SUSQ, FFIV, APOL, LPX, CBI, VRGY, FAST, AMAT

Bearish Watch:

JCP, MON

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 was followed by some afternoon stability and upside, leaving the NAZ near Friday’s closing level while the S&P 500 and DJIA were able to post gains.  Today’s lack of weakness obviously negated the concerns of many who expected to see some downside follow through, and once again we saw a dip get bought.

That dynamic has dominated this market for more than a year now, and it’s not likely to change without the buyers putting up a fight.  They’ve simply been paid too well to give up on what’s been a successful strategy for this long.  So while the uptrend remains somewhat long in the tooth, both in the short-term (from the February lows), and in the intermediate-term (13-month rally), it might just continue for a while.  A pullback or some extended rest phase would be a welcomed sight to many, but for now the wait continues.

Very little is showing up in the charts tonight for new plays tomorrow, but that’s a reminder that it’s all about quality rather than quantity.  More good setups will arrive soon, so while we wait for those patterns to mature, selectivity is the key.

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: TUES, FO, JOE, PEI, FFIV, APOL, DV, FAST

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PDCO, WMS, JOE, TSRA, APOL, LPX, DV, IRE, HD, FAST, PEI, LCAPA

Bearish Watch:

CAG, CF, GDP

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!

Option expiration Friday is often dubbed a volatile day, but rarely does it end up playing out that way.  Last week we saw an exception to that though, as the indexes took the most significant tumble since the first week of February.  While it’s true that’s not saying a whole lot given the one-way nature of the price action since then, but it caught many traders off guard.

It’s been easy to get lulled to sleep in this market over the past couple of months, as the overconfidence of the buyers had left volatility readings at their lowest levels since July 2007.  It seemed as though stocks may never go down again – even for a day – to some traders.  Fortunately, we know better than that, and Friday’s decline was important for a couple of reasons.

First, the shift of direction (even if it ends up being short-lived) will help to shake up many charts.  That’s a needed thing in a sea of stocks which have just been climbing steadily for so many weeks.  It should mix up things a bit, and help to create some new bases and perhaps even some lasting reversals in some stocks.

Second, Friday’s action serves as an important reminder that there is risk always present in the market.  For those who had forgotten, they now recall that stocks can and will go down sometimes.

Hopefully you didn’t suffer much damage in the selloff, and maybe you were able to offset any long-sided declines with some shorts in stocks like Thursday night’s MEE.  Time will tell if this will mark an important turning point, so I’m in no hurry to make any predictions.

Now is a time to exercise some caution with how quickly to rush in and buy this dip, because it might not be over yet.  It’s also a time to exercise some patience in letting some new setups come along.  We’ve seen quite a few in recent weeks, but it may be a few days that we’ll need to primarily sit on our hands while we wait for some technical clarity.  The steady up move followed by an abrupt drop leaves very few stocks with constructive patterns, so keep that in mind as we head into a brand new week of trading.  Protect capital, and be willing to wait for the best situations to arise before putting on more 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: GS, YGE, STP, IVN, FCX, WLT, CBI, LPX, DV, JCP, GDP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PDCO, CREE, CDNS, WMS, NFLX, NOG, FFIV, APOL, LPX, DV

Bearish Watch:

JCP, LLEN, CAG, CF, CLF, NTES, GDP, MAA

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 nice rally off the open today provided enough lift to put the indexes in positive territory, where they also ended.  The early strength was followed by a few hours of basing action, with traders unwilling to put more capital to work.  We’ve seen a nice rally in the last several sessions, so at this point perhaps some rest is starting to arrive.

Price has surged enough that there’s a decent cushion in the NAZ and S&P 500 between current levels and the uptrend lines, which could allow for some rest or a pullback in the short term.  However, the buyers have momentum on their side, so a continued lift is not out of the question.

Tomorrow is an options expiration Friday, and as I’ve noted here many times before, those days tend to bring with them some unusual price action compared to most other days.  That, combined with the fact that I simply don’t see a lot of setups in the charts tonight leaves me looking to do very little on Friday aside from perhaps a couple of day trades and the management of my current open positions.  There have been some good moves this week for us, but when the setups aren’t there, it’s a reminder not to force trades.  Making money is nice, but giving it back is no fun, so protect capital whenever the conditions warrant a more conservative approach.  That’s my plan heading into 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: TIE, FO, SFL, IVN, FCX, APOL, WLT, LPX, YGE, STP, CBI, MEE

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

COL, LEA, PDCO, PCX, FO, GR, VMW, ACXM, PMI, TXRH, WMS, STT, UYM, WLT, MBI, MF, LPX, CBI

Bearish Watch:

CAG, MON, MEE, RTI

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