Good evening StockBandits!

With the market having bounced a significant amount from the October lows, it finally began to stall out.  We saw the NAZ test its high of 2190 without clearing it, and the S&P 500 struggled with the 1100 level.

Two Fridays ago, we saw a downside reversal which sent the bulls home with something to think about over the weekend.  Last week, they returned in the mood to raise cash, and the selloff lasted through Wednesday.  Thursday’s relief bounce was attractive on the surface with nearly a 200-point gain on the DJIA and a solid advance for the S&P 500, but volume was lighter and the NAZ was unable to erase even the prior day’s losses.

I noted here that an inside day like we saw on Thursday can often prove to be a rest day before a resumption of the short-term trend, which is down, and that’s what we saw on Friday as stocks came under pressure to make new pullback lows.  The NAZ found short-term support at the October low of 2040 to keep the uptrend intact (for now), but finished only a few points away from that important level.

So as we head into a new week, it’s tricky.  Short-term, the weakness is showing us that the buyers are lacking the strength and resolve they had just a couple of weeks ago.  That has me very cautious on the long side.  At the same time, another relief bounce could arrive anytime and take the indexes quickly higher as bulls hope for another higher low and bears rush to cover shorts.  So I’m planning to keep caution levels high for another day or two, but the expansion we’re seeing in volatility is a very encouraging sign from a trading standpoint – and I’m excited about it!

One final note is that I will be traveling on Monday evening and therefore will be unable to post an update Monday night.  Things will be back to normal come Tuesday though.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CP, UA, PSS, AONE, JLL, NTRI, CHKP, WHR, FCN, BNI, BEN

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

SRS, NTRI, CHKP

Bearish Watch:

WHR, AONE, RL, CREE, STEC, AM, TCO, ANF, FSYS, SY, JEF, HOC, FCN, VMI, BEN, LEN, JLL

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 economic news this morning combined with short-term oversold conditions from yesterday to produce some early strength today which was built upon throughout the day.  The gap up this morning saw only a minor and brief attempt to get sold, and from there the market simply trended higher.  Shorts were covered and the dip buyers who have been absent of late finally arrived to put cash to work.  The result was an impressive rebound of triple-digit proportions. [Read more…]

Good evening StockBandits!

With the NAZ having broken the uptrend line which began in March yesterday, it was poised for follow through.  It didn’t disappoint.  Stocks suffered another down day as the dip buyers remained absent, allowing the S&P 500 to also undercut its uptrend line with today’s weakness.  This is both technically & psychologically significant for this market, as it shows a shift in the mindset of buyers and an expansion in volatility for the first time in quite a while.  That’s great for us as traders, I might add! [Read more…]

Good evening StockBandits!

Monday’s weakness carried over into today as the dip-buyers stayed again for another session.  The DJIA, being only 30 stocks, was actually up slightly on the day thanks to solid gains by AXP and XOM.  However, techs led the downside as the NAZ gave up a little more than 1%, while the S&P was off a couple points, keeping each of those indexes beneath the key levels of 2150 and 1074 that they broke yesterday. [Read more…]

Good evening StockBandits!

The bulls arrived ready to roll as the new week began, and stocks pushed higher for a steady 30 minutes right out of the gate this morning.  The initial strength saw some rest, but as bank stocks began to weaken, so did the market.  Pretty soon, a sharp selloff ensued, erasing the early gains and taking the market well into the red where it remained for the rest of the day. [Read more…]

Good evening StockBandits!

On the heels of positive news from heavyweights MSFT and AMZN, the market jumped higher Friday morning.  The early strength didn’t last long at all though, and the highs of the session were made in the opening minutes.  As the morning progressed, the opening gap was filled and the indexes turned negative soon after.  A gradual downtrend continued into the afternoon, although most of the weakness was seen in the first portion of the day. [Read more…]

Good evening StockBandits!

A big reversal on Wednesday suggested that some additional profit-taking could quite easily set in, and this morning that appeared to be taking place.  Early weakness took the indexes farther down from their highs, only to reverse course at 10am ET and trend higher for the remainder of the day.  The S&P 500 bounced from the 1074 level, right on cue, as the blue chips brought green. [Read more…]

Good evening StockBandits!

Another strong morning took the market higher today, but once a rest set in, the buyers never returned.  The late-morning to mid-afternoon stretch was again characterized by a choppy trading range and a distinct lack of momentum, and once the final hour began, so did the selling. [Read more…]

Good evening StockBandits!

The positive news after the bell yesterday gave us an indication last night that we could be facing an upside gap this morning.  That was indeed the case, but rather than building on it, traders took the opportunity to lock in some gains and do some selling.  The early gains were erased, and the market finished in the red. [Read more…]

Good evening StockBandits!

This morning started with some modest optimism as stocks gapped higher.  That early strength quickly faded though, and the indexes tested the downside in the opening half hour.  However, just as we’ve seen so often, the dip-buyers stepped in to offer support as stocks turned higher for the remainder of the day. [Read more…]