Good evening StockBandits!

A positive start to the week quickly found momentum this morning as the indexes jumped right out of the gate.  A big surge in buying kicked in right after the opening bell, taking each of the indexes to new recovery highs on the year as stocks continued their climb.  Some afternoon profit-taking did bring the market down a bit from its best levels of the day, but all in all it was a very solid performance by the bulls.

Aside from the impressive point gains, each of the indexes cleared key levels today, making it a technically significant day as well.  The S&P 500 closed above 1100, the NAZ closed above 2190, and the DJIA finished above 10,400.  Each of those zones have been outlined here in recent weeks and months, so the key going forward will be whether or not the bulls can build on today’s strength.  We’ve seen quite a run just in the past couple of weeks, but with momentum on their side, the bulls could continue to drive stocks higher for a little while longer.

At some point we’ll need to see a more meaningful rest, but the few days of quiet action we saw last week helped to alleviate some of the overbought conditions which had emerged, paving the way for another leg up.  Today’s move could be the start of it, but it’s still a time to stay on our guard just in case conditions shift suddenly.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed:  WHR, NTRI, HBI, UIS, WYNN, ARO, WFMI

Swing Trading Candidates:

WFMI has established the $26.70 area as a key level in recent months with it serving as both resistance and support.  In the past few weeks, the stock has trended lower to approach that level once again, and after a failed bounce attempt which created the ‘h’ pattern, it may be poised for another move lower.  There is an unfilled gap from early August which I’ll be using as my target for this one, and I’ll look to short sell it if it undercuts the $26.70 horizontal trend line.

Chart courtesy of StockFinder

Bullish Watch:

WHR, NTRI, FCEA, FCN, ADSK, CHKP, MGA, MCK, LCAPA, REV, MMM, TUP, CVX, FDX, DTV, HBI, SFD, UIS, HMIN, SGY, EMN

Bearish Watch:

AONE, WFMI, FUQI, WYNN, STEC, 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!

With the major indexes moving sharply higher in the past couple weeks right from support zones, we saw them become short-term extended last week.  The S&P 500 and DJIA each broke out to new recovery highs, and the NAZ approached its recovery high as well.  Those with some inventory on hand certainly had reasons to book some profits, but they didn’t.  Only one decline was seen, which came on Thursday, and it was quickly forgotten with a Friday rebound.

What we have now is a handful of index charts which have rallied and put in a brief rest.  And as logical as it would be for some more meaningful rest to occur here, it could be that this market simply wants to move higher.  Wide trading ranges have developed over the past 9 weeks with well-defined support and resistance zones, and that range could potentially serve as a base for another push higher – if the bulls want it badly enough.

On the other hand, the breakouts we saw last week have yet to be built upon.  In fact, the S&P 500 has fallen back below they key 1100 area.  It’s also a possibility that this trading range will persist, so we need to be on our toes in case that scenario unfolds as well.

It’s certainly an interesting spot, and this next week could be an important one for the short-term health of the market.  The trends are still up, but the light volume we’ve seen lately is a wild card factor to be aware of.  I’ll be setting up some if-then scenarios for trades this week in hopes of participating in the next move regardless of direction, but as always I will not attempt to force trades – only taking the setups as they come.

Tonight will be written format once again, but we’ll return to the video format tomorrow. I’m setting up some day trades and swing 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

Swing Trading Candidates:

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Bullish Watch:

RL, CREE, FSYS, FCN, ADSK, WCN, RAI, NFLX, CHKP, MGA, MCK, HS, REV, GOL, FDX, DTV, RGLD, HBI, DISH, UIS, FOSL, MXB

Bearish Watch:

AONE, STEC, X, STT, MCO, UTHR, AMGN, WFMI, FUQI, APOL, LEAP, FLR, ARO, CLR, AKS, HOT, AAWW, EBAY, DV

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 attempt to push higher this morning ultimately tipped the scales a bit too far as the bulls decided to book some long-awaited profits.  The bounce from the lows of just 8 sessions ago has brought the DJIA and S&P 500 each to new recovery highs, while the NAZ got to within just 11 points of its highs today.  To say the market had become stretched to the upside in the near term would be an expression of modesty, as there simply has been no rest in the relentless advance.  However, today’s reversal points to some exhaustion having set in over the short term, so perhaps we’ll finally see a little bit of a pullback.

It’s far too early at this point to gauge whether today’s decline is the start of something more meaningful, but it is a logical time to see the market back off from its highs after such a sharp run in recent days.  The bulls still have uptrends in place across the board, so it’s going to take quite a bit to change that.  One scenario which could develop here is that the short-term trading range could persist for a little while in the NAZ and S&P 500, particularly if some follow through on the downside is seen pretty soon.  I’m not rooting for a selloff, but am glad the nonstop bounce has taken at least a breather for a day.

Tonight will be written format as that’s what works best for me, but we’ll return to the video format next week.  I’m setting up some day trades and swing trades heading into Friday, so here’s what’s on my radar with my notes on the charts themselves.

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Day Trading Candidates:

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Chart courtesy of StockFinder

Swing Trading Candidates:

Chart courtesy of StockFinder

Bullish Watch:

QID, AMAG, FCN, HS, REV, MELI, SVA, XIDE, QCOM, DISH

Bearish Watch:

DISCA, JBL, FWLT, DTG, WFMI, FUQI, JLL, APOL, MAN, SCHN, RTI, JNPR, ARO, CRL, CMI, HP, XEC, CLR, MHK, HOT, HON

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 stage for some continued strength on the heels of the multi-day rally we’ve already had, and pretty soon new recovery highs were set for both the DJIA and S&P 500.  The NAZ also got to within 1% of its October high, but some mild profit-taking brought each of the averages down from their best levels by the closing bell.

The overall market remains very extended in the short term, and yet the creation of new recovery highs is no doubt a bullish event.  As traders, it’s imperative that we not only gauge direction, but risk/reward when contemplating trades.  Tonight that’s the biggest factor to me, as this is a high-risk spot to be buying for any timeframe other than quick trades.  At the same time, as extended as prices have become and as ripe as the conditions are for some profit-taking to kick in, we still have yet to see it begin, and that’s grounds for caution when considering short sales.

So with the pair of one-way moves we’ve had in just the past 3 weeks, many charts are showing large V-shaped patterns which are simply too sloppy for initiating new multi-day positions.  I’m looking to keep my trading timeframe brief for new plays tomorrow, while managing existing swing trades.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: FSYS, REV, NTRI, ROVI, NSC, WFMI, ARO, XEC

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

AMAG, OSG, NTRI, FSYS, REV, CVX, SVA, ROVI, SFY, NSC, XRTX

Bearish Watch:

GYMB, AONE, WFMI, FUQI, APOL, SCHN, RTI, JNPR, ARO, CRL, RRC, XEC

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 indexes had become rather stretched to the upside in recent days, raising the likelihood of some profit-taking or rest.  Today it appeared we just might get some selling as the indexes backed off yesterday’s levels, but the downside found no traction and ultimately it proved to simply be a day of rest.  The S&P 500 broke its win streak with a fractional decline, but overall we finished near Monday’s closing levels across the board.

The buyers remain in control of the tape, and that’s keeping prices afloat for now.  The short side has offered limited success, despite the potential it carries after such a significant bounce, and that means short-covering continues to play a role in the current environment.  A rest or some kind of pullback from these levels would be a healthy thing, and it would perpetuate the trading range for the S&P 500 and NAZ, but for now the bulls have the ball and don’t seem eager to let go.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SVA, DTV, GYMB, ACL, ARO, CVX

Swing Trading Candidates:

CVX ran higher from its October low, and since then has channeled for more than 3 weeks.  This price action has constructed a large bull flag pattern, and I’m watching for a breakout through $78.50 to trigger a buy.  Today’s action tested the upper end of the range, implying a breakout could come any day.

Chart courtesy of StockFinder

Bullish Watch:

TNB, NFLX, AWI, GY, SWK, CFN, HGSI, CVX, DTV, LMDIA, BEXP, SVA

Bearish Watch:

GYMB, AONE, MCO, WFMI, APOL, GRMN, LEAP, RTI, ACL, JNPR, ARO, ABAX, CRL

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!

Having just completed a week of upside in V-shaped, decreasing-volume fashion, the market could quite easily have seen some profit-taking kick in today.  That didn’t happen though, as the Monday morning gap to the upside found solid follow-through as the bulls stretched their legs once again.  Today’s strength brought a breakout in the DJIA to a new recovery high, while the NAZ and S&P 500 each moved back toward their October highs as they finished at their best levels of the session.

The market is quickly becoming short-term overbought once again on the heels of a 6% bounce from the lows of just last week.  At the same time, the buyers have momentum, and that deserves our respect.  My plan is to stick with the setups that come along while being careful not to chase bullish setups unnecessarily higher, just in case a rest kicks in (which we badly need).  Over the past few weeks a trading range has emerged, and as we near the upper end of it in the NAZ and S&P 500, it’s wise to exercise some caution on the long side – especially after this bounce.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CVX, ASBC, BEC, MON, SWK, CFN, HGSI, CNW, GRMN, RTI, JNPR

Swing Trading Candidates:

RTI has bounced in recent days, but the upside has been limited and volume is diminishing.  The past 2 days, this one has finished well off its session highs, which is another indication that it’s struggling to participate in the current market bounce.  A turn lower from here would undercut the rising trend line and pave the way for another leg lower for this stock which is already in correction mode from the September highs.  I’ll be going short with a break of $19.35.

Chart courtesy of StockFinder

JNPR has failed to participate in the tech rally and instead is acting quite poorly here.  A break of support at $25.25 could spark further selling and a move back down toward lower levels, so I’ll be going short if and when that break occurs.

Chart courtesy of StockFinder

Bullish Watch:

TNB, WCN, RAI, NFLX, HS, SWK, CFN, HGSI, BCSI, CVX, ASBC, G

Bearish Watch:

CNW, ABFS, MON, GRMN, BG, RTI, JNPR, BEC

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 early downside on Monday as the market attempted to add to the previous week’s selling pressure, but a reversal kicked in which carried the indexes higher for the remainder of the week.  Thus, the recovery bounce from the recent pullback is still in effect, leaving the door wide open for both the bulls and bears to take control.

If the bulls are able to keep the pressure on, we could climb right back up to the October highs.  However, if they relent, the bears could realize a lower high on the daily charts and start calling for a possible trend change.

At this point it’s still too early to call, so the best bet is to stay on our toes and continue playing the setups which come along.  Earnings season is starting to wind down a bit, which should present more swing trading opportunities for us in the weeks ahead.  I’m looking forward to it, as we’re getting some increased volatility and that means bigger moves are starting to arrive.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SWK, HGSI, WHR, BXP, MON, MICC

Swing Trading Candidates:

MON broke the $70 area a couple of weeks ago and continued lower.  Since then it has bounced on weaker volume back up to test former support, and Friday was unable to reclaim it on a closing basis.  This looks like a failing bounce within a downtrend, so I’m watching for a break of the small rising trend line to trigger a short sale at $68.70.

Chart courtesy of StockFinder

MICC turned sharply lower from its October high and broke key support on heavy volume.  Last week this stock bounced back on light volume to test that former support level from below, and could not reclaim it.  The bounce also has created a bearish rising wedge pattern, which if broken to the downside could spark another wave of selling.  I’ll be using the lower trend line at $66 as my pivot for a short sale if broken.

Chart courtesy of StockFinder

Bullish Watch:

V, PNC, TNB, HS, SWK, GOL, TUP, PRGO, HGSI

Bearish Watch:

WHR, CPT, CNW, NTRS, MCO, BXP, MON, SOHU, APOL, GRMN, MICC, CLI, FSLR, AEM, LEAP

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!

Wednesday’s post-FOMC selloff erased the day’s solid early gains, giving the appearance that the bounce on the daily charts of the indexes was already failing.  However, the buyers were back in form today, quickly reclaiming yesterday’s highs and easily pushing back through them as the market tacked on 2%.

The back-and-forth volatility is a welcomed change for traders, particularly on an intraday basis, but there are some mixed signals on the daily charts tonight which are keeping the picture a bit foggy.  Tomorrow morning we have the economic situation which could easily spark another opening gap in either direction, making it a tricky spot to try to get positioned very heavily on either side of the tape right now.  It’s a time when a stick-and-move approach is likely best, so I’m planning on keeping my timeframes brief as we head into Friday.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: SWK, PODD, GOL, HGSI, AONE, APOL, FSLR, AEM

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CAT, TNB, GY, SWK, PODD, GOL, GAP, CFN, PRGO, HGSI

Bearish Watch:

AONE, APOL, LTD, CLI, ALTR, FSLR, AEM, PSYS

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 stocks having spent the past few days still rather oversold, conditions were ripe for a bounce today.  For a while, that’s exactly what we saw as the buyers put cash to work and the indexes headed north ahead of the FOMC announcement.  Once the news was out, the usual back-and-forth indecision followed.  The market tagged the session highs, and that was it.  As the final hour unfolded, so did the rally, and stocks gave back their gains to finish nearly unchanged on the session. [Read more…]

Good evening StockBandits!

This market is really struggling to bounce.  With the first substantial pullback in a while having taken place in recent days, the word “oversold” is surfacing in many places.  While everyone’s definition of that may differ slightly, we can all agree that the underlying premise is that prices are moving lower at a pace which isn’t sustainable.  From there, we know that either some stabilization will set in and a rest arrives, or a bounce eventually comes along to alleviate some of the pain (temporarily at least).  Right now we’re still oversold, but stabilization hasn’t happened and neither has the bounce. [Read more…]