Good evening StockBandits!

On the heels of a churning session Monday with incredibly light volume, today we saw more of the same with the market never getting far from the flat line.  The indexes spent the bulk of today’s session range-bound once again, finishing fractionally higher than Monday’s closing levels.

So far, it’s shaping up to be a pretty quiet week, which is interesting since traders only have 4 days to make it count with the market closed for Good Friday.  Nonetheless, the indexes can stand to rest, as we’ve seen very little consolidation throughout this rally from the February lows.  Although this range-bound action sure makes for a dull environment in the short term, it is quite healthy for most individual charts to get to do some basing here.

More setups are arriving in the charts by the day, and that should keep us busy in the days and weeks ahead.  However, I’m looking to approach the next couple of days with some caution given the very light volume we’ve already seen this week.  In addition, with a 3-day weekend approaching fast, we could see traders continue to do less rather than more.

Selectivity and patience are important here, and it’s critical we avoid overtrading while in the midst of a short-term trading range.  Exercise some patience if momentum isn’t present tomorrow, because eventually we’ll see the action heat up again.

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: PDCO, PCX, RDN, FNSR, UTHR, CAGC, CNW, PCL

Swing Trading Candidates:

CNW rallied nicely from the February low where key support was found, and in recent weeks has put in a nice base with a minor pullback.  There’s a trend line just overhead, which if cleared, could pave the way for a push back toward key resistance.  I’ll be a buyer if this one can clear the trend line at $36.

Chart courtesy of StockFinder

PCL has carved out a nice cup & handle pattern over the past couple of months, and today’s turn higher within the handle on a pick up in volume indicates a breakout may come anytime.  I’ll be going long if this one can clear resistance with a push through $39.40.

Chart courtesy of StockFinder

Bullish Watch:

CNW, TMK, PDCO, LPNT, CISG, PCX, CTEL, RDN, MSG, WYNN, AGP, AET, FNSR, PCL, A, FDX, HSY, PXD, GR, KSU, DMND, CSTR, RCL, SOHU, R

Bearish Watch:

UTHR, DSW, GDP, CAGC, DTV, CAG, OSG

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 holiday-shortened trading week in which the action should be more condensed, there sure wasn’t much taking place today.  Perhaps the quarter-end activity has already occurred, but the fact of the matter is that today’s trading ranges were quite narrow and volume was very light.  That made for some choppy conditions in which doing less was certainly better than more.

In looking through many charts of individual stocks tonight, I did see one thing for the first time in a while which has been distinctly absent:  some bases beginning to form.  The quiet action in recent days has gone a long way towards improving the number of stocks which are suitable for trading, as I’ve been very reluctant to chase extended names after big recent runs.  A few days can have a dramatic impact on the appearance of a chart, and that’s certainly encouraging for the days ahead.

Heading into Tuesday, we have no guarantee the action will improve, but if it does, there are quite a few stocks emerging which could offer some potential.  I would expect that to continue to be the case these next few days, barring any sudden changes in the overall price action.  As usual, I’ll be waiting for stocks to hint at imminent moves, and watching key levels before looking to get aggressive.

By the way, I am doing a webinar Tuesday night with the folks at Worden, so be sure to register as it’s free and I’d love for you to attend.  I’ll be going through charts for 30 minutes and then we’ll have 15min of Q&A to round out the evening.  A recording will also be available for those registered.  Here’s the link to get registered, and hope I see you there at 8pm ET!

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: CREE, CTEL, RDN, DE, AGP, AET, MLHR, GDP, UTHR, COL, HMA, PCX, RYN, TMK

Swing Trading Candidates:

TMK remains in a nice uptrend here, and for the past several sessions has put in some needed rest.  A turn higher from here up through the trend line at $53.65 could put this one back on the move for another leg higher within the trend, so I’ll be using that level as a pivot for a buy.

Chart courtesy of StockFinder

Bullish Watch:

COL, BA, EFX, DLTR, HMA, HAR, PKI, HE, CVI, PDCO, CREE, PCX, CTEL, RDN, RYN, CDNS, MGA, WYNN, FO, BID, DE, AGP, AET, TMK, LLEN

Bearish Watch:

UTHR, MLHR, GDP, DSW

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!

More new 52-week highs were made last week as the major averages tacked on early gains and held onto them as the week progressed.  A minor dip from the highs was seen in the latter portion of the week, but it was mostly a brief rest for this market which continues to push higher without any meaningful pullbacks.  That dynamic is frustrating both bulls and bears alike, as the buyers would like to get in on the rally and the short sellers can’t get any lasting downside to set in at all.

At some point, that will change, and it’s important for us to recognize that.  One of the toughest things about being a trader is walking the line carefully between trading what we see and looking slightly ahead to plan for what may soon arrive.  I’m not claiming that a bear market is right around the corner, but eventually we are going to see a pretty good pullback, so it’s imperative that we continue to monitor the price action and the character of the moves in the days and weeks ahead.  Once some elements begin to shift, it’ll be a good signal to take a more defensive posture, but right now it’s tough to get even a brief rest in stocks to create some new patterns.  Patience is important in a tape like this, so we can’t be in too big of a hurry to either deploy capital or call a top.

As we head into a 4-day trading week (with the market being closed on Friday for the Good Friday holiday), the bulls maintain an edge in both the technical and psychological realms.  We have some key levels to keep an eye on, but otherwise the uptrend channels are still very much intact and deserve our respect.  While we wait for better conditions to surface for putting more capital to work on a multi-day timeframe, day trades look best so I’ll be taking a quick-hit approach for Monday.

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: LPNT, HMA, MLHR, EFX, JCP, HAR, BA, SYNA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

COL, BA, EFX, LEA, GD, DLTR, TRW, CISG, JCP, LPNT, ODP, HMA, HAR

Bearish Watch:

ANW, UTHR, SYNA, MLHR, SQM, MED

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!

Another push higher this morning took the indexes back to more new highs, but the strength proved to be fleeting as an afternoon selloff erased the day’s gains.  It wasn’t a negative experience though, as the major averages finished just a short distance from Wednesday’s closing levels.

Today’s afternoon rollover does indicate some fatigue setting in, as it’s been unusual to see this market give up gains.  What it’s been more known for is its ability to erase deficits, as stocks have been bought on every single dip.  A move like we saw this afternoon doesn’t mean the party is over, because the bulls are likely to defend their recent success, but it does indicate some added caution on the long side is warranted here.

With that in mind, I’m planning to take a pretty conservative approach as we head into the final session of the week.  Spring fever may hit traders with the urge to get away from the screens in the afternoon, and I want to be mindful of that as well and stay selective.

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: LEA, DPZ, MED, ANW, SQM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DPZ, JOE, LEA, AIG, A, CPE, AET

Bearish Watch:

MED, PXP, ANW, KOL, SPWRA, COG, UIS, UTHR, SQM, HP, RRC, SYNA, DTV, CF, SU, DO, AGQ, ECA, MMR

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 down this morning set the early tone for the market on the heels of yesterday’s new 52-week highs.  However, traders allowed stocks to sit underwater for the remainder of the day, unwilling to step in (yet) and buy the dip.  To the credit of the bulls, as if they needed any, the downside didn’t gather any momentum either.  That left us with a slightly negative session which was characterized by a narrow trading range as much as anything.

Each of the indexes posted inside bars on their daily charts, which often times simply prove to be continuation setups for the prevailing trend.  We’ll know tomorrow whether that’s the case or not, but either way, this market has been relentlessly strong and deserving of respect.

After looking through a great number of individual charts tonight, there’s not an abundance of setups to eye for Thursday.  As a result, I’m looking to stay pretty selective and keep a tight leash on any new 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: PHM, CREE, EFX, LYV, CPE, CTXS, UTHR, SWN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

EFX, CSTR, CREE, FRT, H, BBBB, JOE, ACXM, CIT, MBI, LYV, CPE, PHM, CTXS, GRT

Bearish Watch:

UTHR, UIS, ADM, ATW, XEC, FSLR, KOL, SPWRA, HLX, SQM, SWN, JRCC, HP, RRC

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!

Modest upside this morning gradually gained momentum as the afternoon provided some additional lift for the market.  This created across-the-board breakouts once again in the indexes as short-term resistance zones were easily cleared.  That means we only saw 3 days of rest before the strength returned, which has been par for the course in recent weeks with this nonstop market.

With stocks still on the run, little has changed in the way of healthy basing action and thorough consolidations.  Most individual names still need to put in rest, but the updraft isn’t allowing them to do so.  Rather than attempt to predict when that may occur, our best bet is to keep working the charts in search of setups which offer some short-term potential.  Eventually we’ll see better conditions arrive for putting more capital to work, but at the moment selectivity is the key to not chasing this market too far.

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: CMG, CREE, VMC, EFX, ACXM

Swing Trading Candidates:

ACXM has trended higher for many months now, running higher and building sound bases along the way.  For the past few weeks, this stock has pulled back only a small amount, while generally moving sideways.  This is positive basing action, and today’s turn higher on a pick up in volume implies a breakout may be coming soon.  I’m watching for a move up through the trend line at $18.10 to trigger a buy as the uptrend begins a new leg higher.

Chart courtesy of StockFinder

Bullish Watch:

ACXM, CMG, CSIQ, JOE, GVA, DTG, FOSL, DCP, BBBB, CREE, CSTR, QCOM, VMC, MRX, BCSI, MELI, A, PNC, NTRS, MYGN, EFX

Bearish Watch:

HK, SNDA, ADM, SWN

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 weekend news flow regarding healthcare left traders skittish this morning, sending the futures markets lower and leaving stocks with lower bids.  The gap down on the open didn’t last very long though, as bulls and bears alike recognized rare follow through weakness and stepped in quickly with cash.  As shorts got covered and stocks were bought, the indexes moved into the green once again by a modest amount for the remainder of the day.

Traders on both sides of this tape right now are confounded by the one-way nature of this multi-week move.  Bulls can’t get a pullback to allow them a re-entry, while the bears can’t get a break for more than a few hours with the lack of weakness we’ve seen.  With everyone so anxious to see a decent dip, the market isn’t playing along.  At some point that’s going to change and better bases will be built, but for the time being, we’ve got to survive it and pull out some profits with some shorter-term 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: ACXM, GVA, PNC, DCP, MRX, A, HXM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PNC, DAN, ACXM, DTG, ATK, DPZ, LAMR, MGA, DCP, GVA, ITG, VMC, TIVO, MRX, BCSI, ROK, ALKS, A

Bearish Watch:

HXM, LAZ

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 week we saw the SPY reach a big milestone with a streak of 14 consecutive positive closes, but as with all streaks, that came to an end.  Thursday’s downside was a mere formality, whereas Friday’s selling was more of the legitimate variety.  Along with option expiration came the most downside pressure we’ve seen in nearly a month, as the recent straight-up move finally ran into air thin enough that even short-covering didn’t take place.

So does Friday’s turn lower on big volume (which, by the way was largely options-related) mean that the end of the run has finally arrived?  Does it mean that we just short aggressively and wait for the profits to roll in?  Well, I don’t think it’s going to be that simple.  It does point to some short-term exhaustion, which means in the next couple of days the market appears poised for at least a rest, and possibly some further corrective price action.  After the move we’ve seen in the past few weeks, that would surprise very few.  However, the nature of the advance needs to be considered before we can jump to any conclusions.

The nonstop fashion in which the market has moved indicates to me that it’s been largely driven by bears needing to cover short sales which are losing money.  The day to day advances have been relatively quiet, which isn’t really characteristic of a runaway bull market.  In those environments, you’ll tend to see at least an occasional 200-point daily advance, but lately they’ve been more of the 50-point variety.  The biggest clue to me that this has largely been short covering is that the market has been unable to go down.  Every minor bit of weakness is met with buying, which is out of desperation on the part of bears who perceive any and all weakness as a chance to exit and alleviate the pain.  On the flip side, a bull-driven market tends to see profit-taking, but we’ve not seen that.

With that said, going forward there will be a new element to consider, which is the fact that new 52-week highs have been made, and that of course has the attention of the bulls.  Knowing that the bears are on the ropes lately also builds the confidence of bulls, and many buyers will now expect the dips to each get bought.  That of course may perpetuate the same kind of action we saw throughout 2009, which was a buy-all-dips market.

So the bottom line here is this:  this market badly needs a rest, some selling, whatever you want to call it.  But we can’t fully expect it to just dart south from here because the bulls aren’t likely to walk away quickly.  Could be that we see a pretty good battle shape up, so be prepared for anything and toss any bias out the window!

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: VMC, ATK, HXM, HK, REGN, UTHR, CSIQ, DTG, AIG, AMSC, CAAS, CAGC, VSEA

Swing Trading Candidates:

VSEA bounced from support last week but in a sluggish fashion, and the stock still faces considerable technical overhead.  A small rising trend line is just beneath current prices, and a break of that trend line will trigger a short sale for me at $29.15 as this one could roll back over toward key support upon such a break.

Chart courtesy of StockFinder

Bullish Watch:

CSIQ, ATK, DTG, LEA, CNAM, CIT, VMC, AIG, ROK

Bearish Watch:

AMSC, CAAS, FCX, PLL, HXM, CSKI, HK, REGN, VSEA, ADM, UTHR, FLR, SBAC, CAGC

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!

Inside bars told the story today for the NAZ and S&P 500 as they respected Wednesday’s trading ranges and never gathered momentum in either direction.  The lack of volume was noticeable as well, which contributed to the lack of follow through we saw.  In the end, the indexes finished little-changed, putting in a much-needed day of rest after the recent run.  Even the SPY put a formal end to its 14-session win streak, giving up a mere 6 cents.

It remains a very difficult environment for trading aggressively, as the stretched nature of the averages makes for tough spots to buy.  At the same time, the lack of downside we’ve seen leaves fewer charts with a bearish appearance, reminding us that the short side is also one to be careful with.  This will change at some point, I want to remind you, but until it does some added patience is necessary.  We must wait for better conditions before becoming more aggressive, but we won’t have to wait forever.  A little added volatility will go a long way, it just isn’t here yet.

Tomorrow we have options expiration Friday, which is typically a bit of an unusual day due to the impact of derivatives on the trading action.  Motivations can differ on those days, as the buying and selling is often accompanied by hedges, so it’s always worth approaching such sessions with some added caution.  That’s my game plan, so I’ll be focused on some day trade candidates tomorrow rather than looking to build any new positions.

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: CREE, HOLX, MBI, AMSC, HK, REGN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SFSF, CAKE, WLP, CREE, DTG, SANM, LEA, HOLX, VAR, AMLN, MBI

Bearish Watch:

AMSC, HXM, PXP, HK, CDE, REGN, ADM

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 SPY streak continued today as it went for its 14th straight gain, and yet again the major averages advanced in a modest but consistent fashion.  It seems there’s a major player or two caught on the wrong side of this tape right now, and they’re slowly being squeezed out with this persistent upside over the past few weeks.

We did see an attempt at some afternoon profit-taking, but it didn’t really materialize into anything but a minor slide from the best levels of the day.  The S&P 500 and NAZ each added to their recent runs, while the DJIA finally joined in with a 52-week high of its own by clearing January resistance.

The day to day pace remains rather quiet, as we’ve sure not seen any huge single-day advances over the past few weeks, but the overall progress is quite impressive.  The daily charts of the indexes continue to show a market that’s stretched to the upside, without any rest or pullback, which means that caution is still wise on both sides of the tape.  The run could persist, or we could see a much-needed rest kick in at any time, so I plan to stay on my toes as long as that remains the case.

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: LEA, VAR, DPZ, HXM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FOSL, SFSF, CMG, CAKE, PAY, DPZ, CNW, DCP, SANM, LEA, RT, GMCR, BIG, VAR, PVTB

Bearish Watch:

HXM, FSYS, QCOM

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