Good evening StockBandits!

A weak open this morning set the tone for the day’s trading, and the buyers never emerged.  The indexes drifted lower to move deeper into their respective trading ranges, confirming the failed breakouts we’ve seen in recent days.  By the end of the session, the indexes had given up 1.2% across the board, again shying away from upper resistance zones.

The inability of the bulls to capitalize on recent breakout attempts remains a concern.  They’ve got longer-term momentum on their side with a 9-month rally of magnificent proportions off the March lows, but the stalled-out appearance of the daily charts at these levels implies they’re facing some fatigue.  At the same time, we still have yet to see a breakdown or any downside follow through, which means the bears haven’t had much to work with.  At some point, we’ll see this range get broken with some force and better momentum will arrive.  Until then, we either stay sidelined and preserve capital by not overtrading, or we take a stick-and-move approach with shortened timeframes and tight stops.

Tomorrow is options expiration, so the action could get choppy as the day progresses.  Also keep in mind that the end of the year is fast approaching, so volume is likely to start tapering off very soon.  My plan at this point is discussed in the video, but essentially I’ll produce the Bandit Broadcast through next Tuesday, December 22nd, and then be done for December.  I always take off the week between Christmas and New Year’s, but have no intentions of returning to trade on New Year’s Eve since it’s such a quiet day.  The end of the year is a great time to reflect, rest, and renew goals for the coming year, so I’d encourage you to do the same.  I also wrote about this very thing on the blog this morning.  Anyway, I’ll be sure to post my plans again here as next Tuesday arrives, but wanted to give you a heads-up.

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: MCO, JOE, CAL, HUN, WMS, VMW, BBY

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SLG, CBT, VNO, TTM, ALK, MCO, JOE, CAL, CEG, CRZO, HUN, IMAX

Bearish Watch:

FCX, WMS, CEDC, AIG, FWLT, ARO, CNQ, STT, FLS, BIDU, CLF, WYNN, VMW, ORLY, SINA, NFLX, BBY, BAC, FSYS, NOV

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!

Today was the much-anticipated Fed day, and it proved to be a non-event.  Not only did the averages finish just a few points from Tuesday’s closing levels, but no intraday momentum was ever seen.  Although the FOMC announcement did prompt a little profit-taking, it was very minor and orderly.

The market remains in a trading range, and traders continue to show a lack of interest in the market.  Strength has struggled to find follow through, and yet the dips are still getting bought.  As a result, the standoff continues between buyers and sellers while the clock keeps ticking.

We’re getting into the final 2 weeks of the year now, and the factors I mentioned on November 30th are very much in play between now and New Year’s.  I’m reminding myself, as well as you, that this is a time when unusual cross currents are at work.  The way to respond is to take it in stride and stay selective, particularly while the technical picture is showing no momentum.  This will pass soon, but the key is not to force anything until then.

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: HEW, AGU, CSX, RGLD, WYNN, NFLX, OSK

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CHKP, VNO, SLG, FMCN, CAR, HEW, VMED, APWR, ALK, MDVN, MCO, JOE, TSRA, AGU, MOO, CSX

Bearish Watch:

PBR, GG, BVN, GDX, RGLD, WYNN, ANF, TS, HOG, NFLX, OSK, BAC, PNC

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 I mentioned that although the indexes had each posted closing breakouts by finishing above key levels, they weren’t out of the woods yet.  That cautious stance was based on the fact that volume wasn’t exceptional on the breakout, nor was the upside momentum as essentially the bulls simply maintained prices above resistance levels.  Today we saw those levels given up with ease, as prices fell right back down into the recent trading range.

This indecisive action is likely being influenced by tomorrow’s scheduled FOMC announcement on interest rates, as anytime the Fed comments on the state of the economy the market pauses to listen.  It’s usually not so much what the Fed does, as it is what they say, and tomorrow’s 2:15pm ET announcement is likely to be a market mover one way or the other.  For tonight though, my plan is to remain short-term with new plays, maintain current swing trades, and stay selective until we get a solid break from this range.

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: ACL, HEW, PBR, CEDC, RGLD, WYNN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, F, CBT, VNO, GIL, LNCR, CAR, KLAC, LRCX, VISN, DTG, STX, RRD, HEW, H, AMSC, SANM

Bearish Watch:

CEDC, LNC, CNQ, STT, PBR, AU, GG, BVN, GDX, RGLD, IAG, GOLD, SLW, WYNN, VMW, PRU, ORLY, AGO, ANF, PCAR

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!

Positive news out of Dubai paved the way for an upbeat open this morning, but it wasn’t long before the excitement fizzled out.  With the President speaking today and an FOMC announcement on interest rates right around the corner (Wednesday), traders chose to proceed with caution.  As a result, momentum was sparse, and yet again we saw the bulk of the intraday price action characterized by a choppy trading range.

The one positive that came out of today’s action was that we finally saw breakouts occur on a closing basis in each of the averages as the NAZ closed above 2205, the S&P 500 above 1113, and the DJIA above 10,500.  That’s encouraging to see, but even that was not quite ideal since the indexes finished only a short distance above those levels and did so on light volume.  It is possible that we see limited follow through to today’s technical breakouts ahead of Wednesday’s big event, so it’s still a time when caution is warranted.

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: STX, MON, F, RIG, MBT, GOLD, ACL, HCP, CREE, LNCR, PBR, GG, BVN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, HCP, F, SWSI, WY, CBT, VNO, BEAV, PSS, CLI, GIL, FMCN, CREE, LNCR, TSTC, CAGC, CAR, SLXP, KLAC, LRCX, VISN, STX, MON, INFA, DTG

Bearish Watch:

CEDC, CNX, RIG, MBT, DO, PBR, GG, BVN, SLW, GDX, RGLD, GOLD, AEM, USO, 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!

The bulls had yet another great opportunity on Friday to produce a meaningful breakout from the multi-week trading range as the major averages got to within just a few points each of their respective key resistance levels.  Needing a close above 2205 (NAZ), 1113 (S&P 500), and 10,500 (DJIA), the indexes could never quite gather enough steam to clear the hurdles.  Instead, we saw a quiet Friday with more sideways trading action, along with only minor net changes and mixed results by the closing bell.

The thing about trading ranges is that they can really test our patience.  Continuation traders find them extremely frustrating, and there’s a sense that just a little nudge might do the trick to get prices back on the move.  As a result, it’s easy to get focused just a little too under the microscope, where every newly-painted bar on the chart appears it could be the start of the next meaningful move.  Of course, the series of failures and reversals will slap the hands of many traders who are overly anticipatory, which serves as a great reminder to us that we must wait for confirmation of a new move before aggressively taking action.

We are still bound by a trading range, and therefore if we’re going to be effective, we must keep timeframes shortened and a tighter leash on trades, staying selective with new plays until the overall market can get back on the move.  Once that happens, we’ll be able to count on some better follow through and the assistance of the broad market.  For now though, the waiting game continues.

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: NSC, PSS, RMBS, RIG, FLS, ACL, BBY, CLI, FCX, ARO, PBR, GDX, RGLD, VNO

Swing Trading Candidates:

VNO has bounced sharply from its lows of just a couple weeks ago, and over the past several days it has rested quietly with only a minor pullback.  This price action has created a well-defined bull flag pattern, so I’m watching for a breakout through the upper flag trend line at $70 to trigger a buy.  My trade parameters are in the Hit List post.

Chart courtesy of StockFinder

Bullish Watch:

ACL, NTRI, NSC, BBY, PLD, HCP, CHKP, TTM, SEED, F, TRW, GD, SWSI, WY, CBS, CBT, VNO, ASIA, BEAV, PSS, RMBS, CLI, SLG

Bearish Watch:

CLF, PCU, FCX, MTL, RRC, CNQ, DO, STR, DVN, CNX, XOP, RIG, PBR, OXY, NUVA, ERTS, FWLT, AIG, LNC, RYL, MBT, STT, MFE, FLS, BIDU, AU, GG, BVN, GDX, RGLD, GOLD, ABX, SLW

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 up this morning took the indexes back to the upper end of the trading range and suggested this might be the day the bulls have been waiting for.  Breakout territory was only a few points away, and yet a dead sideways trading range was all they could muster for the rest of the session.  The lack of momentum delivered an incredibly tight channel, with buyers and sellers at a complete standoff for several hours.  Even as the final hour of the day arrived, all we saw was a minor dip followed by a bounce.

This kind of lackluster action is exactly what has perpetuated the trading range for the past few weeks, and the failure to capitalize on a breakout opportunity suggests the bulls still aren’t ready to start another run.  For now, the market is holding up well.  However, the lack of follow through remains an issue, as most stocks are simply limited in their capacity for lasting moves as long as the range persists.

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: ACL, F, WMS, AIG, RINO, RYL

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, TTM, F, UAUA, SBUX, CREE, SWSI, RRD, CBT, TEG, MDVN, TECD

Bearish Watch:

FCX, WMS, PEET, VMC, AIG, JEF, RIG, RYL, 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!

The bulk of the session was characterized by trendless action once again today, although some afternoon strength ultimately made the difference as each of the major indexes were able to post modest gains.  The trading ranges we’ve been closely watching on the daily charts in recent weeks are still intact, making it easy to overanalyze the action on any given day despite the fact we’ve seen nothing of technical significance for weeks.

I’m still waiting for a close beyond the trading range boundaries, and until then am sticking primarily with shortened timeframes and staying selective while waiting for better momentum to arrive.  One of these days it 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: UAUA, KLAC, LRCX, WY, MAN, WMS, MDVN

Swing Trading Candidates:

MDVN has been on quite a run lately, pausing for occasional rests on the way up.  Over the past few days, this one has pulled back in a shallow fashion and stabilized, implying it could turn higher once again very soon.  I’ll be a buyer if this one can clear $33.75 to turn back up out of this bull pennant pattern.

Chart courtesy of StockFinder

Bullish Watch:

TSTC, VMED, MMM, TTM, SEED, UAUA, AONE, CREE, IPI, POT, DECK, TRIT, TRW, SWSI, RMBS, KLAC, LRCX, WY, ALB, FMCN, MRX, CBT, VNO, SLXP, LUV, TIN, AME, TEG, DTE, MDVN, MAN

Bearish Watch:

WMS, UPL, NUVA, UNM, ATLS, PLCE

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 slightly negative open this morning set the tone for the day, and the indexes never were able to recover.  Despite the fact that they never touched positive territory, the downside was contained quite well, offering the appearance of a buyer’s strike rather than any intense selling.  The intraday trend also reflected that, as no downside momentum was ever seen.  The S&P 500 set its low for the session in the opening minutes and simply hovered above that level for the remainder of the day.

Today’s action of course keeps the recent trading ranges very much intact, and as we slide a little further from the highs it reminds us again of the importance of breakouts which happen on a closing basis.  I discussed that last week with the failed attempts to clear resistance, and it’s still an important issue this market is facing.  No technical damage has been done, but if the bulls want to make a year-end run, it’s going to have to start with a close above 1113 (S&P 500), 2205 (NAZ) and 10,500 (DJIA).  Until then, the action could remain choppy and trendless.

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: TSTC, ALB, MRX, VMED, SEED, SMN, SWSI, SLXP, AXP, XOP, NFX, PXD

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, NANO, CGA, TSTC, VMED, HLF, SEED, VISN, IOC, SMN, SWSI, ALB, MRX, WX, VECO, CBT, SLXP

Bearish Watch:

WFMI, AXP, UNT, PVA, MEE, UPL, ILMN, UNM, NOV, XOP, MTL, NFX, LNC, PXD, ATLS

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 spent the day in a mostly uneventful trading range with only minor net changes across the board.  Light volume contributed to the lack of momentum, as early modest gains were given back in the afternoon before a late-day bounce essentially returned the indexes back to Friday’s closing levels.  It had the feel of a waiting game in which nobody blinked.

So little has changed for the overall picture, and the primary item of concern remains the multi-week trading ranges which we have been watching so closely of late.  A closing breakout will be needed in order to technically trust a move through resistance, and ideally that would be accompanied by a surge in volume.  However, selectivity and shortened timeframes is still my mantra until that occurs.  There are some swing candidates tonight, but overall I’m sure not looking to load the boat yet in either direction.

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: VMED, SWSI, WY, LFT, ALB, MRX, XOP, UNM, ECA, HAR, WX, CBT

Swing Trading Candidates:

WX has been trending higher in a stair-step fashion, and over the past week has pulled back gradually from its high.  This has created a small descending trend line, which I’ll be using as a pivot for a buy at $17.10.

Chart courtesy of StockFinder

CBT has based in a high channel for a couple of months now, and currently is sitting just a short distance from a breakout.  I’ll be a buyer if resistance is cleared with a push through $25.05, and will have a tight stop expecting a breakout to produce follow through quickly.

Chart courtesy of StockFinder

Bullish Watch:

ACL, LFT, SNIC, VMED, CHKP, CYD, DDS, IOC, SWSI, WY, ALB, FMCN, TSL, MRX, WX, WCRX, HRBN, CBS, CBT, VECO

Bearish Watch:

WFMI, BEN, WYNN, FLR, UNM, AIG, JEF, XOP, BIDU, CEDC, ECA, SII, NFX, GS, HAR, EXPE

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 highly-anticipated jobs report on Friday before the bell was indeed a market-mover, causing a big gap up once the opening bell rang.  The NAZ gapped roughly 30 points on the open to the upside, and the DJIA was up triple digits in no time.  The NAZ followed the blue chips by finally breaking out above recent resistance at 2205, but traders sensed an opportunity to lock in profits so that’s exactly what they did.  By mid-day, all the early gains had been erased, and for the 3rd straight session the breakout attempts failed as the S&P 500, DJIA and NAZ each closed back under their key levels of 1113, 10,500 and 2205, respectively.

The fact that the market is tagging new recovery highs yet again is certainly proof that the buyers are still running the show.  However, the failure to close at new highs above resistance zones is a bit concerning and warrants continued caution.  Performance anxiety in the market brings a herd mentality to the forefront of the action, as new highs will inspire more buying.  However, it’s been quite a run and the institutional money certainly will be quick to lock in a solid 2009 at any hint of weakness, making for a little bit of a skittish environment.

No doubt it’s tricky out there, but such is the case with a market that’s seeing a battle take place (read: trading range).  It’s simply a cue for us to stay selective and on our toes, taking the best setups as they come along.  That’s always the aim, so I’m planning to do just that as we head into a brand new week.

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: SWSI, GD, UNM, CEDC, NFX, EQT, ACL, NSC, TRW, SMN, LFT, AIG, XOP, MTL

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, DLB, LFT, SNIC, VMED, CHKP, MMM, FDX, CREE, H, SLH, DTV, NSC, ANV, TRW, SMN, SWSI, GD, TRA, ATHR

Bearish Watch:

WFMI, UNT, UPL, RRC, ILMN, UNM, PEET, AIG, FWLT, XOP, MTL, SPN, CEDC, ECA, SII, NFX, EQT

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