Good evening StockBandits!

A huge agenda today offered the market a number of things to focus on, from earnings reports to the FOMC to breaking news from tech leader AAPL, and of course tonight’s State of the Union address from the President.  That set the stage for plenty of knee-jerk reactions, and we could see more tomorrow as the market digests it all.

At the end of the day though, the market is still waiting for the bulls to produce some meaningful upside on the heels of the recent decline.  The market tends to move its own way and then find news to support it, and lately the sellers have dominated.  Even with all of today’s catalysts, the upside was modest in comparison to the slide of last week.  That isn’t to say we won’t see a continued bounce, but the longer we see the indexes rest after such a sizeable selloff and the slower the bulls are to act on depressed prices, the possibility is raised that we’ll see a continuation move to the downside.

Tonight there are quite a few bearish charts setting up due to the price action of the past several sessions.  The harsh decline and quiet rest phase we’ve seen since then is building bear flags, pennants, and wedges in many places.  Not all of them are ready to go, but the hesitation we’ve seen on the part of the bulls certainly opens the door for another wave of selling to arrive – unless they build aggressively on today’s minor bounce.  Therefore, caution is still warranted on the long side, particularly until better momentum surfaces.  I’m watching for weak bounces in individual stocks, both in terms of price and volume, but waiting to see if this market can rebound further before looking to press the short side.

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: MMR, ILMN, AMED, PFCB, M, SPN, PWRD

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

MAPP, MMR, ILMN, MNTA, IT, AMED, PFCB

Bearish Watch:

CSIQ, TSL, SLG, GLD, AXP, BBY, TIF, MA, OII, OSG, SPN, PWRD

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 minor bounce after a sharp selloff last week pointed to a sudden lack of interest on the part of dip buyers – the group which has been so responsible for the continuation of the market uptrend which started last March.  Rather than stepping in to offer support, they were distinctly absent for a few days last week, presumably waiting for the selling to end.  But once some green was seen on Monday, they failed to get involved, leaving the market with only slight gains across the board.  That suggested the downward move might have more to go before a meaningful bounce is seen, as did yesterday’s inside bar after the trend move lower.  Today, those were validated with another weak session.

At one point this morning, we did see a rally off the lows unfold in a squeeze-like manner, but the pullback which followed that was met with more buying and new highs.  It looked like perhaps a relief bounce might finally be unfolding, but the strength stalled in the early afternoon and simply led to a rollover move which gave back the day’s gains.  In the end, minor losses were posted, which is more of a psychological blow to the bulls than a technical one.

Clearly it’s still a market which can’t be trusted on the long side yet, but today’s lack of a major move in either direction does help to offer another bar for consolidation purposes on the daily charts of many stocks – something which is badly needed in the construction of new tradeable patterns.  Shortened timeframes are still best heading into tomorrow, so stay sidelined if you’re not an intraday trader.  At some point we’re going to see some good opportunities emerge, but they aren’t here yet after this one-way move.

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, AMED, TIF, MA, OSG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CFN, IT, AMED, SWSI

Bearish Watch:

SY, TIF, TUP, SWC, EBIX, CXW, MTW, MA, ROK, WLL, 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!

With last week’s extreme selling pressure leaving the indexes somewhat oversold in the very short term, the market was poised for some kind of bounce heading into today’s session.  And that’s just what we got.  The only problem was that it was incredibly weak.  To say it failed to impress would be a huge understatement, so to be more blunt, it was downright pathetic.

Not only were the net changes by the closing bell just a drop in the bucket to what was lost last week, but at no time during today’s session was a real upside run even made.  We saw the market gap higher, but no momentum ever surfaced.  The S&P 500 modestly cleared its morning highs during the afternoon, but that only led to another round of selling which left the market limping to the finish line, ending the day only higher by a few points.

So tonight, we have a pair of elements which are worth noting – one psychological, and one technical.  The psychological element is that the bears suddenly feel alive again.  Not only did they have some downside follow through last week for the first time in quite a while, but the inability of the bulls to fight it is still incredibly lame.  That is confirmation that the character of this market is changing.  The technical element worth noting is that today’s bounce only produced an inside day on the daily charts.  Often when found within a trend, inside days lead to follow through, which doesn’t bode well for tomorrow.  After all, if today’s rebound was the best the bulls could muster after such a sharp decline in the previous sessions, then they’re likely to want to raise more cash in light of such a poor bounce (so far).

We do have an FOMC meeting on Wednesday which could be used as a catalyst for a move in either direction, depending of course on what the Fed says.  And traders may have been exercising caution today ahead of that, but it’s still got to be disheartening to the bulls to see last week’s downside slam get followed by such a meager gain 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: PXP, SJT, AMLN, AMSC, CTRP, COH, MMR, GCI, IT, IVN, CXW, BTU

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PXP, MMR, PRXL, TLB, SJT, GCI, IT, AMLN, JEC

Bearish Watch:

NFLX, IVN, CXW, DECK, CP, IMAX, M, BTU

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 NAZ and S&P 500 each testing short-term support on Wednesday, and despite brief penetrations of those levels, the market was able to rally back enough to end the day still in the trading ranges which began one month ago.  However, Thursday’s arrival brought with it swift and decisive downside price action, easily undercutting those support levels on expanding volume.  The DJIA also broke its 10-month uptrend line, slicing through it without hesitation after several recent tests.  And finally, rather than producing even a modest relief bounce on Friday, the selloff continued, matching Thursday’s losses as traders fled from stocks ahead of the weekend.

Some feel that the bank reform proposals put forth by Obama on Thursday set this all in motion when financial stocks took such a big hit, while others have sensed it was inevitable that a correction would at some point kick in after such a tremendous market run for the better part of a year.  Regardless of the cause, it does appear the market is undergoing a change of character here, based not only on the steep declines, but also the lack of effort on the part of dip buyers.  That has been the crowd which has prevented selloffs from lasting or being severe, but they were nowhere to be found for the past couple of sessions.  If they’re losing their resolve, then we can expect some different price action going forward.

One thing is for certain, which is that many individual charts now look very different than they did just a few days ago.  Most are shattered, in fact.  While that might mean limited setups for a few days, eventually it’s going to mean a whole different batch of names to focus on.  We’re either going to need to see some consolidation set in, a relief bounce which struggles to hold, or a combination of the two, but pretty soon there should be many more setups even if it’s slim pickin’s tonight.

Volatility has spiked, which is a good thing, and the market now remembers that it’s able to move in both directions, which should keep things quite interesting in the days and weeks to come.

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: SSO, CHKP, MTL, FAS, QLD, DDM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

DPZ, CFN, MAPP

Bearish Watch:

JLL, MGA, NFLX, XCO, AMZN, EDU, CP, LIFE

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 Wednesday’s tests of short-term support (which held on a closing basis), the major averages rolled over hard today to undercut those key levels on a closing basis.  This is a technical breach which not only gives us a resolution to the trading ranges which have held in recent weeks, but also suggests some downside follow through could arrive rather easily as profit-taking kicks in for the first time in a while.

Today’s decline took the DJIA down through the uptrend line that extends all the way back to the beginning of this rally in March 2009, while the S&P 500 broke its uptrend line which began in early November.  This kind of action might cause the bulls to reconsider their stance, at least temporarily, and apparently they did today as no attempt was made to buy the dip.  Given the strength of the uptrend since last spring though, as well as consolidation phases at various times in recent months, there are some potential support levels we’ll keep an eye on just in case downside follow through is seen.  At the very least, this should help to shake up some individual charts for us.

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: CFN, LUV, JLL, AVB, AMZN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PENN, CRL, CFN, HUM, LUV

Bearish Watch:

V, GMCR, LAMR, F, JLL, AVB, NFLX, MELI, SLG, AMZN, AM, DECK

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!

After Tuesday’s solid advance, today’s action was every bit as weak.  A minor gap to the downside this morning never inspired the buyers to step in, and instead prompted some profit-taking.  The DJIA headed lower by more than 200 points at its worst level, and the NAZ and S&P 500 each incrementally broke their short-term trading range lows.  However, the bulls finally defended those levels, producing a moderate bounce in the afternoon to lift the indexes off of key levels.  In the end, Tuesday’s gains were given back, and we’re now just a few points from last Friday’s closing levels.

Today’s volatility is actually a welcomed sight, as it indicates the emergence of some kind of battle between buyers and sellers.  We still have the indexes range-bound, so nothing of technical significance has taken place, but if anything today’s action offers us two bits of information.  The first is that the bulls are losing steam by failing to produce follow through to Tuesday’s strength.  The second is that the bulls still aren’t ready to walk away, and currently still seem committed to protecting the downside.

So if the bulls are more interested in protecting the downside than in building on the upside, this range might persist a little longer.  Either way, it is nice to see some added emotion, and I’m rooting for more volatility in the days and weeks ahead, as that will offer us more opportunities for short-term trading.

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: CFN, PCX, AMZN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PNC, PXP, GNW, ACI, CIT, MTB, CFN, MR, AXP, TLB

Bearish Watch:

ANF, SYNA, NFLX, FMX, TUP, MELI, XCO, PCX, AMZN

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 bulls jumped out to the early lead today for this holiday-shortened week, sending the indexes climbing higher with solid advances across the board.  A relatively flat open was followed by a clean morning uptrend, and as the day progressed the indexes simply added a few more points while primarily preserving the early gains.  In the end, each finished near their session highs.

Today’s move puts the S&P 500 right at key short-term resistance at 1150, while the NAZ ended just a few points shy of its January high, still range-bound.  Obviously it wouldn’t take much to produce a breakout from here, especially with the bulls in the driver’s seat across all timeframes.  It’s follow through that’s most important though, so if we do see new highs established tomorrow, they key will be whether or not it invites more buying.  Many stocks are in solid uptrends but still deserving of rest, so despite the widespread strength, selectivity still plays a role for us as traders.

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: H, PDS, PNC, GNW, ONXX, IVN, ANF, SYNA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SYK, V, H, F, DRWI, SWK, BUCY, HUN, JAH, PNC, PXP, GNW, AVB, ZION, HIG, ONXX, MEE, GLD, IVN, AXL, TEX, PDS, HAL, PCX

Bearish Watch:

ANF, SYNA, NFLX, FMX, TUP, IOC

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!

After seeing new highs in each of the indexes last week, Friday’s downside ultimately made the difference as minor losses were posted on the week.  And although Friday’s action wasn’t pretty, the market was able to recover from its worst levels of the session to cut some of the day’s losses.  We have yet to see any technical damage be done yet, which keeps us in short-term trading ranges and intermediate-term uptrends while we watch for some range expansion to arrive.  Volatility has steadily contracted, but at some point we’ll see emotions play a greater role in the day to day action, so we need to stay on our toes.

The NAZ remains in a well-defined trading range, while a similar but tighter range is starting to emerge in the S&P 500.  It tested a pair of short-term levels last week with 1150 twice serving as resistance and 1131 twice serving as support.  The 1131 area corresponds with the December highs, so to see former resistance now acting as support is one way to further validate that level.  If we do see a close beneath that level, it would suggest further profit-taking, and therefore would offer grounds for added caution on the long side in the near term.  That same level also corresponds with the rising trend line which began in early November and has been offering support during the past couple of months.  A break of that trend line would be another technical development worth noting, as the downside may accelerate if that occurs.

We have a holiday-shortened week this week, so let’s see what happens.  Friday’s dip helped to shake up some of the charts, and I would expect to see more trade candidates this week if some consolidation follows.  The bulls are still in the driver’s seat, and all eyes will be on them to see if they’re going to keep driving the action in the short term.  The creation of lower highs and lower lows before the health of the longer-term trends would be threatened.

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: SYK, AGCO, SLG, SYNA, JAH, IOC

Swing Trading Candidates:

JAH has pulled back in recent days, but the stock has closed at nearly the same level for the past 3 sessions.  Price is also finding support at a prior key level, and a turn higher through the descending trend line at $32 could put this one back on the move to the upside.  I’ll be a buyer if that occurs, and will keep a tight stop just below.

Chart courtesy of StockFinder

IOC made a monster move in recent months with a relentless uptrend, but suddenly this stock seems to have changed character with a big move lower on heavy volume.  It’s really struggling to bounce here, and a move down through the rising trend line at $74.35 could bring sellers back into the picture.  I’ll be going short this stock if that occurs.

Chart courtesy of StockFinder

Bullish Watch:

SYK, H, SWC, APL, JAH, BCRX, FRT, AGCO, PENN, GNW, PDC, BA, PXP, PNC

Bearish Watch:

XCO, CRM, SNDK, CSKI, EBIX, ARE, SYNA, FCN, UPL, ANF, AET, FMX, TUP, GPN, MELI, EQIX, TECD, IOC, SLG, INFA

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 was once again only a flash in the pan as strength returned today, nearly erasing yesterday’s losses.  The major indexes each finished just a few points away from Monday’s closing levels, with the NAZ and S&P 500 each stopping just shy while the DJIA was able to push slightly through.

The bulls continue to find reward in scooping up every single dip in this market, no matter how brief.  As long as that remains the case, we can expect them to behave in a similar fashion.

The real key will be in finding setups which offer a perceived risk/reward which is worthwhile, and in stocks which are not too short-term extended.  That’s a tall order in the current environment, so selectivity is still quite important.

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: DRWI, ARM, ESI, TIF, BA, MDC, FAST, NTRI, TRV

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

H, DAL, ABV, AXP, FRT, KIM, ESI, TIF, AEIS, LYV, TEVA, DRWI, ARM, X, HANS, MDC, CAT, IR, FAST, BA

Bearish Watch:

NTRI, ANF, TRV, LPS, FCN, FAF, FMX

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 weak start this morning left traders considering doing some profit-taking, which they ultimately did.  The NAZ gave up 1.3%, while the S&P 500 lost 1% on the session, shaking up the charts a bit in the process and reminding the Street that selling is still a possibility in what has been a one-way market.

Today’s decline didn’t do any technical damage, and in the case of the NAZ, actually filled most of the gap from January 4th before a minor bounce from the lows kicked in.  Rising trend lines aren’t too far below for the S&P 500 and DJIA, so let’s see if the bulls are able to protect them in the days ahead.

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: DOW, AEIS, TIF, ESI, MGA, AXP, NFLX, FAF

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ESI, DF, DOW, MGA, AXP, STEC, AEIS, TIF

Bearish Watch:

NFLX, FAF, RIMM, GYMB

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