Good evening StockBandits!

Monday morning optimism set the early tone today with a slight upside gap, opening the door for a continued push higher from the February lows.  The market held onto it for the remainder of the session, posting a solid advance by the closing bell with the NAZ and S&P 500 each reaching their best levels since January 21st.

Some key levels were reclaimed with today’s action, leaving only the January highs remaining overhead as resistance.  Volume sent some mixed signals, however, as it was light once again for the S&P 500 but heavy for the NAZ.  The DJIA stayed within the short-term trading range though, with volume apparently too light there to inspire the senior index to rally more on the session.  Nonetheless, the short-term consolidation phase has now been cleared for the NAZ and S&P 500, which each moved back into positive ground for 2010.

If the bulls want to build on it, it’ll primarily be up to them to produce the necessary follow through in the days ahead, although they could get a little help from the bears.  There are likely quite a few shorts on the wrong side of this move, as there were only a pair of downside moves from the January highs.  Since then, no follow through has been seen, which could keep the bears on the defensive.  Either way, it’s shaping up to be a more eventful week, so let’s get to the 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: FOSL, TXRH, AU, NTRI, ACI

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

FOSL, CAKE, RAX, MED, JDAS, AEZ, TXRH, PSUN, LLL

Bearish Watch:

AU, WCG, NTRI, APOL, AMT, FSLR, ARO, MLM, ACI

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 got off to a very weak start this morning as futures traded considerably lower.  The gap down open wasn’t met with any additional selling, or buying for that matter, as it apparently left many traders somewhat stunned and uncertain of what to do.  Given all the recent indecision we’ve seen, that’s no big surprise.  Ultimately, the indexes caught an afternoon bid which was ridden all the way to the close.  That erased nearly all the day’s losses, leaving the indexes only fractionally lower by the closing bell.

Today’s action helped to further validate the short-term trading range boundaries we looked at last night, but no new technical developments emerged.  Instead, it was another day spent inside the short-term range, so we’re still awaiting a move one way or the other to get out of it.  The early weakness and late strength point to a continued reluctance of this market to pull back, but the bulls haven’t pressed prices higher either.

Until one of the boundaries gives way, we can expect more noise and indecision within this range.  As a result of the indecision and tomorrow’s slew of economic reports, I’m looking to keep my timeframe for new trades short 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: IT, MED, DPZ, HUN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

JDAS, IT, WLP, MED, CAKE, WFMI, SMCI, DPZ, APH, HUN, LZ, TASR, JAH, AEZ, LFL, SY, NIHD, PLL, CLF, ARO

Bearish Watch:

TIF

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!

No downside follow through was seen today after Tuesday’s pullback on expanding volume.  Rather than see continued profit-taking, the bulls were able to prop up prices for another day, although the short-term highs are still intact.  Today’s volume was light, which is something we’ve seen quite a bit of lately, pointing to a continued lack of institutional involvement.

The indexes now find themselves in short-term trading ranges, which shouldn’t persist for very long due to the narrow nature of them.  The highs of a few days ago mark the upper boundaries, while yesterday’s low marks the lower boundary.  Those are the levels I’ll be focused on heading into tomorrow, and until we see this market being able to show some better follow through, I’ll be looking to limit my activity.  I would expect that to change shortly, but as of tonight there just isn’t much momentum in either direction yet.

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: WLP, GD, LZ, RL, SPG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RAX, FOSL, CMG, CAKE, APL, WLP, JDAS, IT, SMCI, TCO, DPZ, DGIT, LCAPA, APH, HUN, GD, LZ

Bearish Watch:

FSYS, PKX, PBR, TIF, RL, SWM, ATW, IMA, SLB, SPG

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!

Monday’s failure to move higher left the indexes looking vulnerable to a pullback, as multi-day win streaks came to a halt.  Although the market finished only fractionally red, the bars on the daily charts implied that the bounce had stalled out and may soon give way to some profit-taking.

Today, that notion was confirmed with weakness right out of the gate.  Early selling pressure showed cash getting raised across the board, but the pace of the decline slowed by the time the afternoon arrived.  A minor bounce attempt lifted the market only slightly from its lows, suggesting that there may be more to come in terms of selling in the near term.

The 2-week bounce left many stocks hugging some rather steep rising trend lines, and many of those were broken today.  These kinds of moves often tend to establish lower highs on the daily charts, so that’s what we’ll need to closely monitor in the days and weeks ahead.  For now, the long side seems to have less appeal, so let’s see if that remains the case on Wednesday.

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: RAX, PKX, RL, SWM, LFT

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RAX, WFMI, WLP, F, TCO

Bearish Watch:

TIF, PBR, CENX, PKX, FSYS, RL, UA, SNA, MDVN, BGC, WFR, SWM, SPR, AMAG, CAT, FLIR, LAMR, R, ATW, LFT

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 a solid streak of winning days on the line, the indexes entered the new week with some modest strength this morning.  Some minor upside to start the session was quickly erased as selling hit the tape right out of the gate.  The damage was minimal, however, as a low was found just 30 minutes after the open.  The action from there was quite choppy and uneventful, and although the market climbed slowly back to positive territory, some late-day selling pressure left the indexes just slightly in the red by the closing bell.

To see the streak get broken in this fashion is the best-case scenario for short-term bulls, as virtually nothing was given back and the pressure of consecutive gains is now gone.  Nonetheless, this market is due for some rest, so whether it’s more quiet days like today or an actual pullback, it would be very healthy to see either at this point.

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: WFMI, CENX, SNA, MDVN, TIF, PBR, LAMR

Swing Trading Candidates:

TIF has been bouncing back on diminishing volume, and now is stalling out just beneath a key resistance area.  A move down through the rising trend line will trigger a short sale for me at the $43.10 level.

Chart courtesy of StockFinder

PBR has been bouncing back on diminishing volume over the past few weeks, and this one could undercut the rising trend line any day.  A move down through $42.10 will trigger a short sale for me as a swing trade, as that would mark yet another lower high on this daily chart.  Rising trend lines have offered good entries in the past, which also is worth noting.

Chart courtesy of StockFinder

LAMR has rebounded from the February low to test a key resistance area the past two sessions, but the stock has been unable to reclaim it.  Upside volume has also been light, which is bearish.  A move down through the rising trend line at $30.20 will trigger a short sale for me, as that would indicate the start of a turn down from this key area.

Chart courtesy of StockFinder

Bullish Watch:

VRX, WFMI, WYN, APL, KLIC, MGA, AFFX, SMCI

Bearish Watch:

TIF, PBR, CENX, NTRI, PKX, UA, SNA, MDVN, SWM, SPR, IR, LULU, FLIR, WLL, LAMR, FCX, R, TM, SNI

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!

On Thursday after the market had closed, the Fed raised the discount rate, which sent the futures markets heading south.  The stage was set for a weak open on Friday, perhaps even a sizeable gap to the downside, on the heels of what had already been a strong week.  To see the bulls take profits after such a big bounce would have come as no surprise.

However, no selling was seen on Friday.  Instead, the futures rallied steadily through the night, and the market opened relatively flat on Friday.  That inspired some modest strength after the opening bell, taking the indexes into positive territory for the 4th time last week, marking a clean sweep for the bulls during the holiday-shortened week.

The upside did not come without concerns though.  Not only has the bounce from the February low occurred in nearly a straight-up fashion (virtually no rest), but there’s been a distinct lack of volume to go along with it.  That points to limited (at best) participation on the part of institutions, which makes one wonder who will defend this move once the next pullback begins.

There’s little question at this point that the market has become short-term stretched and therefore due for a dip, so the focus will shift from ‘when’ that happens to more of a question of ‘how deep will the pullback be’ once it does arrive.  It could very well be that this bounce ultimately results in a lower high on the daily charts, but whether the February low holds or not will be the determining factor for how aggressively stocks can be sold in the weeks and months ahead.

Heading into this week, many stocks (and the indexes alike) have V-shaped patterns without much basing, which means it’s a time for staying nimble and selective.  We may enter a short-term trading range if the next dip is shallow, so that’s something to be on watch for as the next few days unfold.

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: RAX, FOSL, FSYS, AMSC, AGU, HUM, UA

Swing Trading Candidates:

UA has bounced from its lows over the past couple of weeks, but volume has failed to support it as it continues to decline.  This sets up a bearish price/volume divergence which interests me for a possible play on the short side.  A break of the rising trend line will trigger an entry for me at $25.40, but only once the break occurs.

Chart courtesy of StockFinder

Bullish Watch:

LCC, SFSF, VLTR, RAX, HOC, NETL, VRX, SAFM, FOSL, CMG, TSTC

Bearish Watch:

IOC, NTRI, PKX, FSYS, AMSC, RL, UA, BGC, WFR, SWM, ASIA, HUM, AMAG, AGU

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 most obvious complaint about the price action of late is the fact that the indexes keep climbing without the supporting factor of heavy volume.  Today we saw that continue, as the major averages tacked on modest gains once again, with only light volume to go along with it.  That points to a lack of institutional participation, although it doesn’t seem to be deterring the bulls at all from staying active.

The indexes reached their best levels of the month today, and now sit slightly better than halfway back up to the January highs.  To say the market has become short-term stretched to the upside is certainly fair, although that could persist for longer than logic would suggest.  This evening, the Fed raised the discount rate, and the futures markets are responding with weakness.

That could deliver a soft open tomorrow morning, but how that gets treated will be even more important.  If it brings about more selling as the day progresses, then perhaps the relief bounce has run its course for now.  If on the other hand, the bulls use the weakness as an opportunity to buy, then the slow grind higher might have a little further to carry.  Toss into the mix the fact that it’s options expiration Friday, and it should be an interesting day to say the least.  I’m planning to approach it with respect, and am still waiting for better conditions to emerge for swing trading before committing capital.

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: FOSL, AMT, MDVN, FDX, CP, BGC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, TWC, RVBD, HOLX, LEAP, HGR, MR, FOSL

Bearish Watch:

UTHR, IOC, AMT, PKX, AMSC, MDVN, IVN, FDX, FSYS, MA, R, MSTR, SWM, CP, BGC, WFR

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 bounce on weak volume added to the recovery off the February lows, but it also added reason for skepticism.  Not only were key levels of overhead coming into view, but the limited participation in the upside offered plenty of reason for caution as the odds of a short-term pullback increased.  Today, we saw more strength in the market, albeit of the muted variety, as each of the indexes posted modest gains on continued weak volume.

Needless to say, this market is giving plenty of reasons to stay sidelined, as this type of rally typically isn’t to be trusted for very long.  Nonetheless, the buyers are still building on the relief bounce, and tomorrow could prove to be somewhat pivotal as key resistance levels are now within spitting distance.  With some key earnings reports this evening and some economic news scheduled for tomorrow morning, it will no doubt be interesting to see what’s used for fuel on Thursday.

There are certainly a limited number of tradable patterns in the charts tonight, which is again keeping my timeframe abbreviated heading into tomorrow.  Many stocks have made large V-shaped recoveries over the past couple of weeks, which leaves few candidates on both the long and the short sides.  More setups will emerge in the days ahead, so it’s our job to take what’s available each day and utilize it as best we can while waiting for more opportunities to get aggressive.  Right now, patience is a must.

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: PKX, MDVN, SWM, PHM, HOLX, IOC, AMSC, BGC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, TWC, AFFX, PHM, HOLX

Bearish Watch:

IOC, PKX, AMSC, MDVN, AMAG, FDX, FSYS, MA, PBR, R, MSTR, SWM, CP, RAI, BGC, GPN, FE

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 key levels on the horizon heading into this holiday-shortened trading week, the major indexes were able to push through today with solid gains across the board.  The bulls resisted an opportunity to raise cash as former support zones were approached, and instead continued buying stocks as the day progressed.  This keeps the recovery bounce going, but it’s important to note that the bears retain an edge with short-term lower highs still in place.

I mentioned last night this is options expiration week, which often times brings with it some volume spikes.  Today, despite the widespread strength and intraday uptrends, volume was still lacking.  That may be giving the bears some solace tonight as they wait for the bounce to possibly stall out in the coming days before becoming more active.  It is notable though, as it indicates rather limited institutional involvement in this bounce, implying that just a little heavy selling could easily undo this progress.  As a result, caution is still very much warranted even after a rally like we saw today.

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: MGA, ACXM, AFFX, AMAG, MA, TM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MGA, ACXM, PVX, TWC, LXK, TPX, EMR, AFFX

Bearish Watch:

AMSC, MDVN, AMAG, FSYS, MA, TM, CP

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 indexes continue to try to claw their way back from the most recent selloff, but the bulls didn’t make a lot of headway.  Not only was price unable to reclaim key levels, but volume was severely lacking on the upside as well.  That hints at fewer traders participating in this rally, which is grounds for caution in case it happens to fail.

The post-holiday volume should return this week, along with the heavier volume which typically accompanies an options expiration week, so that may offer more clues for us on the technical side of things.  One thing’s for sure though, which is that the character of this market has changed significantly since the highs were set in January, and it’s making for some tough sledding for those on the long side of the tape.

Those who have been caught on the wrong side have so far used each bounce as an opportunity to raise cash and dump shares, so it will be interesting to see if that occurs again this week.  For now, the sellers are still in charge, the bulls are struggling to recover, and stocks are still building new bases.  No matter which way this market moves, there will be opportunity for us as traders.  At the moment, the shorter timeframes are the best place to be operating due to the ability to manage risk as key levels come into view, so that’s my focus heading into 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: ACXM, CAGC, EL, MED, MA, BAC, UTX

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACXM, CAGC, EL, INCY, MED, ANN, TPX, UAUA, PVX, GRA, BEXP, LNCR

Bearish Watch:

ABV, AMSC, BA, FSYS, MA, FWLT, BAC, FDX, UTX, SINA, GES, COF, FAS, TXT, TIE, VAR, RL, MRO

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