Good evening StockBandits!

The market averages attempted to break out once again today as the S&P 500 and DJIA each crossed resistance zones, only to again get turned away for the second straight session.  The NAZ did not participate, and remains the only one of the three to not achieve a new recovery high this week.  After pulling back from the morning highs, a sleepy mid-day range kept prices confined for a few hours before final-hour weakness picked up some momentum.

Today’s reversal off the highs was a little more dramatic and pronounced than was Wednesday’s, and we saw the market go out on its lows of the sesson.  The net changes weren’t particularly ugly, but the finish on the lows implies that sellers ran out of time before they ran out of inventory.

To see late-day weakness is a different character than what we’ve primarily witnessed of late too, since on many days we have seen a lift off the mid-day lows as the afternoon progresses.  Nonetheless, it could be related to concerns over tomorrow morning’s jobs report as traders would rather raise cash and look to rebuy if necessary than face the potential of an adverse gap if the news is interpreted as poor.

One final note before getting to tonight’s video is that I did not trigger on ILMN today.  My data provider showed the low on the intraday chart as $28.93, which is above my trigger price for the short, but the low on the daily chart as $28.65, which would have caused a trigger.  All I can determine is that there was a bad print away from the market that never triggered an entry for me.  Some of you asked about this today, and I wanted to clarify why it still shows as not triggered on the Hit List grid.  I do still like the setup and it ended the day only a short distance from the trigger, but I have no position 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: WLL, DTV, VMC, CRZO, WYNN, FWLT, VPRT, MTL

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

REV, ADI, WLL, DTV, TRIT, WATG, VISN

Bearish Watch:

WFMI, PVA, BEN, VMC, BX, GMCR, WYNN, RRC, CRZO, ILMN, AIG, PEET, JEC, SM, FWLT, VPRT, VPRT, JEF, HOLX, KBR, MCK, APOL, LM, DVN, CNX, NOV, XOP, MTL

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 attempt at a breakout today was met with no follow through, as the S&P 500 briefly cleared the highs at 1113 only to quickly fall back under that level.  The DJIA made a new intraday recovery high as well, pushing north of the 10,500 zone, but it too was unable to build on that strength and ultimately finished slightly negative on the day.

We’ve been in an environment for most of the year in which every bit of weakness has been bought, leaving no doubt as to the resolve of the bulls.  But on a day like this when breakout attempts fail to gather traction, it raises the question of whether or not the market is becoming tired.  After all, who could blame it after such a sizeable run?

I’m far from being a bear at this point (although I will still trade the short side when bearish setups come along), but I am reminded today of the importance of the close when it comes to breakouts.  Intraday fluctuations which take prices outside their recent ranges are worth noting, yes, but in no way do they carry the same significance as a close beyond the boundaries.  Today we failed to close outside of the recent boundaries, so the range persists for another day (at least).

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: JEC, FWLT, PCP, H, TXT, PCU, ACI, AIG, ILMN

Swing Trading Candidates:

ILMN has exhibited considerable weakness lately, and in the past few days it has bounced rather sharply.  The bounce has created a V-shaped move, as well as a steep rising trend line which price is now starting to lean on.  A move down through the trend line will be the next technical sell point, so I’m watching this one for a play on the short side if and when it undercuts $28.85.

Chart courtesy of StockFinder

Bullish Watch:

ACL, NARA, HNT, LFT, FDX, LEAP, TXT, CLF, PCP, NTAP, WLL, H, CYD, PCU, XME

Bearish Watch:

ESV, ILMN, WFMI, BEN, AAPL, ERTS, GMCR, BAC, WYNN, PEET, AIG, JEC, MDR, HAL, ACI, CTV, CRK, VRX, SM, APA, FWLT, LZ

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 morning gap to the upside set the early tone today, and very quickly we saw the DJIA sitting on a triple-digit gain.  Additional strength kicked in during the next 15 minutes, taking the market to the same levels where it ultimately finished the day.  We did see the morning highs get cleared in the early afternoon, but the indexes backed off slightly into the closing bell after the S&P 500 ran into resistance at 1113 and the DJIA found resistance at the 10,500 area.

While today’s action was undoubtedly positive, we are still in a trading range.  The fact that we have seen the buyers step in to produce a multi-day bounce back up to the upper end of the range is a reminder that the bulls are still in charge, but a close in new high territory will be needed to truly put an end to the range.  Until then, I’m keeping my timeframes short for new plays.

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, JEC, MDR, JRCC, ACI, NANO, PCP, WLL, H

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ACL, PCLN, HEAT, NANO, HNT, LFT, TSTC, NUAN, GSIC, V, CLF, MMM, ADI, LZB, PCP, FDX, DIS, NTAP, WLL, CREE, IPI, H, AIPC, INCY, JDAS

Bearish Watch:

WFMI, VMC, GMCR, FLR, CRZO, ESI, JEC, MDR, JRCC, HAL, 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!

For a good portion of the day today, it was shaping up to be another day in the red for the market.  Early attempts at a bounce failed to gather any steam, and the indexes turned downward at the 1-hour mark, taking the market steadily lower.  By mid-day, things stabilized and we saw an intraday foundation build which ultimately paved the way for the afternoon rally which took the market into positive territory by the closing bell.  Yet again, the dip-buyers were present and they prevailed, capping off a very solid month for the averages.

As we head into the home stretch known as December, there are a few things to keep in mind that I want to mention here…

First, volume is likely to be erratic and yet still overall somewhat light.  With both Hanukkuh and Christmas this month, there are plenty of reasons traders will step away from the screens to tend to family matters and travel.  Throw in New Year’s, and we have more than enough reason to trade lighter this month.

Second, there are some year-end cross currents which simply aren’t present (or as strong) at other times of the year.  Tax-related selling done in calendar year 2009 allows traders to take losses or gains on next year’s returns, so that’s another factor which plays a role this month which is often not of a technical nature.  Institutions (money managers & funds) have had a very nice comeback, not only from 2008 but also a dramatic rebound from the lows set back in March of this year.  They’re paid for performance, so with a solid year on the books, they could be quick to book profits if necessary.  By the same token, if the indexes stay beneath the recent highs, they will have limited motivation to put cash to work, which means many of them could be less active this month.

Finally, and this is more short-term, we are in a range-bound market at the moment.  As eager as I am to finish the year strong, I also must be mindful of the fact that volume of late has been light and price is stuck between resistance and support.  For that reason, I’ll exercise patience and selectivity until some better momentum surfaces.

So as the final month of the year arrives, let’s make the most of it but avoid forcing anything if the setups aren’t there.  I think we’ll definitely have some opportunities, but discretion will be the key.

Back in video format tonight and at full speed…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: CAAS, SEED, NUVA, AXP, MON, LFT, MMM, ADI, ESV

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AXP, MON, LFT, ACL, FDX, REV, PCLN, CAAS, NARA, DLB, MEE, LNCR, HNT, CGA, LNY, TSTC, NTRI, CFN, NUAN, GSIC, V, CLF, DE, HCP, MMM, LCC, TTM, ADI, LZB, SEED, SOLF, ALK, CTRP

Bearish Watch:

WFMI, AYE, CLR, UPL, CERN, FLR, RRC, CRZO, ENER, NUVA, WFR, DTG, UNM, CRL, PEET, TRLG, FO, DBD, ESV, AIG

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!

I hope your Thanksgiving was wonderful and relaxing, and that you were able to spend it just how you had hoped!

With a holiday-shortened trading week due to the Thanksgiving holiday, the volume was extremely light last week, as expected.  That didn’t stop the bulls from jumping out to an early lead with a gap-and-go Monday, but by the end of the week the momentum faded.  Friday’s half session was marked by another sizeable gap, but this time to the downside.

True to form, the buyers stepped in once again to buy the dip, helping the indexes recover from their worst levels of the session to whittle away at the day’s losses, though it still resulted in a decline.  Interestingly, all the back and forth excitement resulted in a virtually unchanged market on the week, as the S&P 500 finished where it ended the previous week.  The NAZ lost only 8 points, and the DJIA was down 9.

So we saw the market go nowhere on a net basis last week, which means we could see something more exciting this week as more traders return to their screens.  My game plan is to tread with caution on Monday until we (hopefully) see volume return to normal levels.  If it does, I’ll be on the lookout for more swing trades as the week progresses.  If volume stays light, my shortened timeframes should serve me well.

Tonight’s Broadcast will be written format once again, but we’ll return to the video format tomorrow.  I’ll be traveling on Sunday, which is why this is being published on Saturday.  I’m setting up several day trades heading into Monday, so here’s what’s on my radar with my notes on the charts themselves.

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Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Day Trading Candidates:

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

ACL, CAAS, RINO, HOLI, DLB, LFT, TSTC, ADI, LZB, SEED

Bearish Watch:

AYE, LUK, BEN, OIS, ABAX, STT, GMCR, CRZO, ENER, TXI, ABFS, NUVA, SCHN, UNM, MLM, VMW, MAN, LTM, BBT, RVBD, MDC, MHK, PEET

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’s decline found buyers yet again today as Monday morning optimism set the early tone.  An upside gap started the day, and the bulls quickly added to the initial gains with a sharp run up right after the bell.  That run marked the highs of the session though, as a steady but shallow pullback set in for the remainder of the day.  The indexes were able to hang onto the majority of their gains though, and in the end solid advances were posted.

Today’s action took the DJIA to new recovery highs, and the senior index continues to lead the way with recent strength and the shallowest pullbacks.  The S&P 500 nearly tagged last week’s high of 1113, stopping just a point shy of it, while the NAZ essentially filled the gap from Thursday of last week.  This leaves the indexes I care the most about (NAZ and S&P 500) in short-term consolidation phases, which could easily be built upon to the upside – particularly with the light holiday volume we’ll see as the week wears on.

My plan is to keep it pretty tight these next few days, sticking with only short-term setups and smaller size due to the lighter participation.  Wednesday before Thanksgiving is often one of the lightest-volume full sessions of the year, plus I’ll be traveling, so there will be no Broadcasts for the remainder of the week.  The next full-version Bandit Broadcast & Hit List posts will come on Sunday. I will check in with the occasional update, but I personally don’t plan to trade beyond Tuesday and it’s a great time to step away from the market and spend some time with family and friends.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: UIS, CAAS, FE, CLR, UPL, FLR, RAI, ACL, TXT, SNIC, HRB, AMAG, WYNN, ENER

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

RAI, ACL, REV, UIS, PCLN, CAAS, TXT, NUS, SNIC, BAC, VMED, CHKP, HRB

Bearish Watch:

FE, ERTS, MCO, CLR, UPL, SNDK, AMAG, WYNN, FLR, ENER

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 a positive start which took the market to its best levels of the year as the S&P 500 reclaimed the 1100 level on a closing basis.  The upside saw no follow through, however, and the week ended in a different manner as selling pressure erased the early gains.

The downside wasn’t anything major, but it was enough to remind us that the market still hasn’t seen much of a correction throughout this entire rally.  The pullbacks have remained very shallow and brief, and the dip-buyers have stepped in repeatedly to offer support.  Friday was another example of that as we saw yet another afternoon bounce which diminished the losses of the day.  The trend remains up, and that deserves our respect, but we need to stay mindful of the fact that at some point we’ll see harsher selling kick in.

For the week ahead, we’ll likely see lighter volume as traders step away for the Thanksgiving holiday, and that’s worth noting.  The market will be closed on Thursday and only open for a 1/2 day on Friday, so it’s certainly a time when trading smaller size and keeping timeframes shortened is warranted given the lighter overall participation we’re likely to have.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CAAS, TSTC, AXP, REV, PCLN, NANO, STT, UPL, CLR, FE

Swing Trading Candidates:

FE has settled into a descending triangle pattern as it trends lower from its Sept/Oct double top pattern.  In the near term, the bounces have carried to lower levels, while short-term support is being tested.  A breakdown through support at $41.40 will trigger a short sale for me as a swing trade.

Chart courtesy of StockFinder

Bullish Watch:

BBY, REV, FCX, HOLI, GOL, RAI, AXP, TX, PCLN, CAAS, HEAT, DLB, MON, NANO, GAP, PRGO, MEE, LNCR, RGLD, HNT, CGA, GLD, LIHR, LNY, CML, TYC, CCI, LFT, TSTC

Bearish Watch:

WFMI, FE, NTRS, UNT, OIS, ERTS, STT, VMC, BX, CLR, UPL, ZION

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 negative start to the day brought about some additional selling as the morning gap to the downside inspired traders to raise some cash.  The lows of the session were found late in the morning though, never to be seen again.  From there, the indexes were able to stabilize and recover a portion of the morning losses, although they did remain in negative territory.

Once again, early weakness was partially offset by some afternoon buying, which is another glimpse of the dip-buyers stepping in to do their thing.  They’ve been paid well every single time they’ve done it since March, so they’re conditioned to respond in this manner.  Whether this time will prove fruitful for them or not remains to be seen, but the intraday bounce reminds us that even on a down day the sellers aren’t the ones in control.

Heading into Friday, it’s an options expiration day, which brings some unusual elements into play for the day.  It is also a Friday ahead of a major holiday with Thanksgiving being next week, so it’s a day on which I’ll be very patient as well as selective with new trades.  Keep that in mind particularly as the afternoon arrives, as more traders will have reason to start the weekend early if no momentum is present.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: RINO, REV, FE, CVC, BBY, DLB, ERTS, CYT

Swing Trading Candidates:

NONE TONIGHT.

Bullish Watch:

AXP, RAI, CVC, GOL, HOLI, RINO, FCX, ACL, REV, TX, UIS, BBY, PCLN, CAAS, NARA, HEAT, DLB

Bearish Watch:

WFMI, AYE, PVA, UNT, LUK, NTRS, OIS, WINN, HOT, FE, CNW, ITG, ERTS, MCO, MET, CYT

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 major indexes spent the day in negative territory today, unable to gather any traction in either direction.  The selling pressure was mild and temporary, as the session lows were made early in the afternoon before a gradual rebound arrived.  The late-day bounce erased most of the losses, leaving the indexes only down slightly on the day.

Today’s action marks another day of rest, and it’s worth noting here that the bulls are hanging tough.  Shallow dips with late-day bounces characterize bull markets, which is what we’re in.  Having just attained new recovery highs from the March low, the trend is still up and a few quiet days like we’ve had the past 2 sessions is certainly a good way to digest recent gains.  It’s a reminder to us to stay very selective when trading the short side, while watching closely to see if the upside momentum will return.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CAT, MMM, UIS, RAI, ACL, COP, KMX, HAL, BEN

Swing Trading Candidates:

NONE TONIGHT.

Bullish Watch:

HAL, CAT, BXP, RAI, BEN, MMM, ACL, CVX, USO, UIS, FOSL, COP, TSTC, PCLN, PLD, KSU, ACF, AMB

Bearish Watch:

WFMI, RRC, GYMB, ITG, AMED, KMX

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 Monday’s breakouts, the indexes weren’t able to do a whole lot today.  A minor test of the downside this morning did find buyers though, and from there we saw the market trend gradually higher into the closing bell.  By the end of the day the indexes were positive, but overall it was a well-deserved day of rest.

With key levels being cleared yesterday across the board, some follow through is expected by many relatively soon.  The fact that the market has run a considerable distance just in the last 2 weeks does warrant some rest, but breakouts generally should be followed by additional strength, particularly when they occur after a few days of rest like we saw last week.  Regardless, today’s quiet action is a healthy way to digest Monday’s gains, and the bulls provided yet another reminder by offering support on even the slightest dip that they still fully intend to defend the uptrend.

Before we get to tonight’s video, I just want to be sure you were able to check out today’s post for The Bandit Blueprint.  It’s a spreadsheet created by a fellow Bandit, and it’s intended to assist you with position-sizing and decision-making on trades.  Be sure to check it out when you get a chance, I think you’ll find it incredibly useful!

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed:  CAT, MMM, UIS, CTRP, ITG, AMED, HAL, BEN, USO

Swing Trading Candidates:

HAL is once again challenging upper resistance here within an uptrend, which means another leg up could begin any day.  I’ll be using the trend line at $32.05 as a pivot for a buy, but will only be a buyer once that level is cleared.

Chart courtesy of StockFinder

BEN has been constructing a well-defined cup & handle pattern over the past few weeks, and is now acting as if it could break out from this pattern any day as it challenges upper resistance.  I’ll be a buyer if and when the $116.50 level is broken as this stock begins a new leg up.

Chart courtesy of StockFinder

USO is an oil tracking ETF and here it is sitting at the top of its recent descending channel after a nice advance during October.  This creates a large bull flag pattern, and a breakout above the channel at $41 will trigger a buy for me.

Chart courtesy of StockFinder

Bullish Watch:

NTRI, HAL, FCN, CAT, LCAPA, BEN, FCX, MMM, TUP, CVX, FDX, MELI, TX, USO, UIS, OIS, CTRP, TXT, COP, PCLN

Bearish Watch:

AMED, WFMI, MCO, RAH, ARO, AMAG, LEN, ITG, STEC

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