Good evening StockBandits!

Traders have been waiting a few days for a market rebound after several sessions of weakness from last week’s highs, and today we started to see a bit of buying.  The indexes were holding most of the day in positive territory, although not by much and the bounce was anything but impressive.  However, true to its recent form, as the closing bell approached, we saw the selling pick back up.  By the end of the session, the day’s gains were completely erased and the bears posted yet another (albeit small) decline.

That late-day selloff served as a psychological win for the bears, and it reminded us all that we’re still in an environment where bounces are getting sold.  With that said, this market is certainly due for a bounce, and perhaps even a multi-day rally.  It has not been exhibiting the kind of strength that would suggest it’s going to stick and take us straight back to the highs, but the pace of this decline isn’t sustainable and at some point we’ll see a combination of bulls stepping in to buy perceived value as well as the bears covering shorts.

We have yet to see that bounce begin, as evidenced by today’s late-day slide, but it’s coming and we need to stay on our toes and watch for its arrival.  There are still some setups out there which could break down further, so the short side still has a handful of opportunities, but for the most part this wave is likely nearer to the end than the beginning.

In looking through many charts tonight, I realized again just how few setups there are out there right now on either side of the tape.  Additionally, the setups which are present are anything but leadership stocks, so this is still a time when capital preservation and patience should be our goals while we let some of the dust settle.

Last Thursday evening I noted I’d be interested in buying a downside gap on Friday, and we got one.  It didn’t last but a few hours, but it was worth catching.  Tonight I feel the same way, and if we get a gap to the downside tomorrow morning, I’ll be eyeing longs in major ETF’s (IWM, SPY, QQQ) for trades with tight stops, as those could offer the kind of short-term washout-types of moves this market appears to need.  Otherwise with a flat or up open, I’ll continue to move with caution and wait for more charts to build better patterns than they’re currently offering.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: ARCO, NLSN, PAY, COP, LTD

Swing Trading Candidates:

NONE TONIGHT

[table “60” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes stayed in pullback mode today to begin the new week as last week’s selling pressure continued.  A pretty flat open was resolved to the downside, and as the day progressed, the market worked its way to new pullback lows from the May highs.

What’s been interesting about this slide is that it’s been persistent.  Last Wednesday when it began, the action was just relentless selling with no real crescendo effect.  Friday morning we saw a gap lower which attempted to fill, but once again late-day selling erased the rebound and postponed hopes for a short-term bounce.  Even with the weekend allowing traders to think rather than simply act, it didn’t curb the selling as it just picked right back up today.

We’re getting to a point where many stocks are getting very short-term stretched to the downside, as are the indexes.  The slide could go further, yes, but at this point taking on new short sales is something where extreme caution is needed due to the likelihood of a bounce increasing by the day.

With so many broken charts out there, swing trades aren’t readily available.  That means my focus remains on preserving capital while seeking to create some cash flow via day trades.  Clearly it’s too late to be shorting much (although a handful of charts still have room), and yet too early to be buying while the weakness persists.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: CTSH, NUVA, WLK, DOW, COP

Swing Trading Candidates:

NONE TONIGHT

[table “59” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Traders returned last Tuesday from a 3-day holiday weekend to produce a spirited rally which took the major indexes considerably higher.  The RUT exceeded its prior high with a solid break of a descending trend line, while the S&P 500 cleared a similar trend line and stopped just shy of its previous short-term high.  That buying enthusiasm saw no follow through, however, as the market came under pressure for the remainder of the week.

From Wednesday into Friday morning, we saw steady selling which took the indexes to new multi-week lows.  Thursday night here, I noted that a downside gap on Friday could set the stage for a rally attempt, and that’s exactly what we saw with a poor start after the jobs number and then a few hours of steady upside.  That rally attempt faltered though, as traders showed their unwillingness to hold positions into the weekend and instead dumped shares in favor of cash ahead of the closing bell.  As a result, the market rolled back over and finished closer to its lows of the day than its highs.

At this point, the indexes remain in poor technical shape, having now created new lows with last week’s slide.  At the same time though, we’re getting short-term extended to the downside and a bounce could arrive any day.  While it will be important to see the nature of the bounce when it arrives, perhaps more important will be the next wave of selling.  Should the bounce happen to be brief in duration and relatively sharp, it will indicate more short-covering and less real interest in the long side, which could make it prone to failure.  However, if we see the market able to stabilize a bit and the next pullback happens to be shallow, then the stage may be set for a rally which has more staying power.

In looking through many charts this weekend, one thing is clear:  there aren’t many setups on either side of the tape.  Most anything which had a bearish setup has broken down with all this weakness, and most stocks which had been constructing bullish patterns have cracked as well, negating those patterns.  Cash is still a great thing to have on hand here as the market continues to correct, so I’ll be picking my spots carefully when it comes to new swings.  For tomorrow’s session, my interest lies in just a few setups for quick plays.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: NUVA, EQT, CIEN, SOHU, DOW, SQNS, ARCO, X, WLP

Swing Trading Candidates:

NONE TONIGHT

[table “58” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The indexes did their best to get positive today after Wednesday’s slaughter, but on the NAZ was able to post a gain.  Even that was just a few points, while the DJIA, S&P and RUT each finished in the red.  The damage wasn’t much – and the S&P held 1312 – but psychologically it was a win for the bears after so many expected to see a bounce attempt take place today.

All the back and forth of the past several sessions has really kept the charts of individual stocks quite messy.  We saw a multi-day advance which produced some upside momentum in quite a few, but a rest was needed.  Instead of some quiet basing action, the market sold off sharply, bringing those stocks right back to recent levels and negating the progress they had made.  As a result, there aren’t many clean setups out there to focus on tonight.  Sometimes that’s the case, and when it is, we don’t force trades.  We take what the market offers us and wait for better opportunities to present themselves – and they will…it’s a long year.

Tomorrow morning in the pre-market we have the always-anticipated jobs report, and that could produce an opening gap one way or another, depending of course upon how the news is interpreted.  I have no bias with which way we go from here, but if I had to take a shot on a gap fill, I’d consider getting long on a downside gap (via ETF’s).  I say that simply because that could prove to be a short-term exhaustion move, so if we open weak and the gap begins to fill, stay on your toes.  Again though, it’s all going to be a knee-jerk response to the data in the early going, and then we’ll shift our focus to whether or not 1312 can continue to hold.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: YOKU, SODA, EMC, X

Swing Trading Candidates:

NONE TONIGHT

[table “57” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Whatever goodwill the market had built up in the past several sessions with the rally from support was completely erased today.  A turn lower in the futures in the premarket was based on disappointing economic data, and it set the tone for the entire day.  That produced a small downside gap on the open, and from there we saw a series of lower highs throughout the session as nonstop selling hit the tape.

Today’s decline took the S&P right back near support, while the DJIA made new pullback lows from its May high.  That kind of a relentless slide after a multi-day rally reminds us that prices can break down much faster than they often rise, and that the market can be quite fickle.  It also reminds us that the price action is the best gauge, as last night I noted here that there simply weren’t many candidates out there after a multi-day run.  Stocks needed rest at the very least, and that offered some very useful caution for today.

The big question at this point is where do we go now?  While I don’t know the answer to that, I will say that today’s abrupt change of direction did more than just some technical damage.  Not only did the indexes give back quickly some hard-won ground, but the bulls who have been pressing the long side of late now have escalating doubts.  That’s likely to keep things volatile in the short-term, which means we should see some opportunities emerge in the days ahead – in both directions.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: JDSU, ANV, WDC, WSM

Swing Trading Candidates:

NONE TONIGHT

[table “56” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The holiday weekend apparently left many market participants gathered at cookouts and discussing the markets, as today we saw overseas strength invite additional buying pressure to kick off this shortened week.  An upside gap was initially greeted with a little profit-taking, however, erasing some of the morning enthusiasm.  The gap was only partially filled though, and we saw another spurt of buying this afternoon take the market out at its highs of the day.

Today’s strength not only put more distance between current prices and the support zones we bounced from last week, but it also served to clear some descending trend lines which had emerged from the recent highs.  That’s a positive technical event, even if additional levels of overhead still exist.

In looking through many charts this evening, I’m seeing quite a few stocks which now need to put in some rest.  That may or may not take place immediately, but if this rally is going to stick, it needs to happen sooner than later.  By the same token, it leaves me reluctant to put cash to work tomorrow as it feels like a bit of a chase at this point.  A little rest or even some mild profit-taking would be a very healthy thing for this market.  Once we see that occur, I would expect to see quite a few more swing setups emerging.

By the way, be sure to check out today’s position trade idea posted earlier in case you missed it.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: NOC, APKT, LNG, RIMM

Swing Trading Candidates:

NONE TONIGHT

[table “55” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last week started out with some selling pressure, but support was found and some modest buying pressure emerged to produce a fair recovery.  On the week, the indexes shed just a few points (only the RUT was higher), offering limited follow through and a lack of lasting momentum.

Volume was expectedly light ahead of a major holiday 3-day weekend, and that also kept the price action pretty contained.  We might be in for a bit more of the same as we start this holiday-shortened trading week on Tuesday, as there will be some traders still on vacation, whether physically or mentally!

Looking at the daily charts of the indexes, we are seeing some descending trend lines after the short-term lower highs which have been set in recent weeks.  As we know, anytime the market starts to move predictably in that kind of fashion, the stage is being set for some kind of surprise.  Whether or not we see that this week remains to be seen, but suffice it to say we need to watch those descending trend lines closely.  It’s not out of the question that this market could turn higher from this relatively shallow pullback, so we need to leave our biases at the door.

I am encouraged by the charts of individual stocks I’m seeing.  Quite a few are working on some constructive patterns, so even if we see some quiet price action over the coming few days, that would only help those patterns to mature further.  My plan is to consider plays on both sides (long and short), and generally stay selective with new swings until we see some better momentum surface one way or the other.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: RENN, GNOM, AET, WDC, ADSK, KKR

Swing Trading Candidates:

KKR has pulled back in recent weeks from its highs, but has held above prior support.  I also like how this one has stabilized in recent days, even giving a bit of a potential shake-out move last Monday before recovering.  I’ll be a buyer if this one clears the trend line at $17.25, expecting a move back up to higher levels. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “54” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A sluggish start to the day was ultimately resolved to the upside today as the major indexes erased their early losses to finish higher.  The NAZ and RUT both trended quite well intraday to lead the way higher, while the DJIA and S&P posted modest gains.

Volume remained light, and with tomorrow being a Friday ahead of a 3-day weekend (market will be closed Monday for Memorial Day), we could see even less activity.  Schools are finishing, summer is arriving, and that simply pulls traders away from their screens temporarily this time of year.  With that in mind, I’d caution to tread lightly tomorrow, particularly as the afternoon sets in.  If there’s an absence of an intraday trend, it could quite easily stay choppy, which makes for a much tougher trading session.  Rather than churn commissions for your broker, be sure there’s some good momentum if you’re going to push buttons tomorrow!

With that said, this rebound from support is continuing to gain traction.  Quite a few stocks have pulled back into support zones and now have descending trend lines overhead which could serve as pivots for turns back up.  My focus for Friday will be on day trades (aside from the two untriggered stocks on the Hit List which I will still enter if they go), and then next week I’ll look at some additional swing setups if they’re still poised for moves.  Essentially, I don’t want to be adding much exposure on a pre-holiday Friday when volume is likely to sag.

Have a safe and fun Memorial Day weekend!

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: SQNS, X, SWKS, COP, WDC

Swing Trading Candidates:

NONE TONIGHT

[table “53” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last night I noted here that we had pulled back for three sessions into key levels for the NAZ and S&P, and that those zones may produce a bounce.  Today we got that bounce as buyers stepped in to defend those levels into some early weakness, with the lows of the day being carved out in the opening minutes of the session.  We saw a decent intraday uptrend emerge, and although some of the gains were given back with some late-day selling, the market finished positive.

We’ve been in an environment where bounces have been getting sold for the past few weeks, which means that once the market is able to make a fair turn back up, it may be slow to take root.  Traders are easily conditioned to respond to recent behavior, so it’s not too surprising that the first day of this bounce is being met with some skepticism (hence the late-day selling).  Nonetheless, we now have a level to trade from on the long side, so let’s see how things unfold.

Despite the fact that this bounce is starting off in a sluggish manner, I have less interest in the short side after seeing key short-term levels hold up.  I’m willing to change my opinion as warranted by the charts, but for now more bullish setups are emerging and that’s worth paying attention to – so long as appropriate stops are well-defined.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

–

Video Stocks Discussed: X, SINA, ATML, LULU, NR, SOHU, FMC

Swing Trading Candidates:

FMC pulled back to key support in recent days and last night I actually listed it for a breakdown candidate.  Today the stock undercut support, but quickly rallied back to reclaim it.  That head-fake move now leaves the stock poised for a push higher, but it will need to clear the trend line at $83.50 first.  I’ll be using that level as a trigger for a buy, and will be looking for a push back up toward the recent highs if it is cleared. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “52” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

A minor gap to the upside was greeted with selling this morning as the pullback continued.  Once the indexes filled the gap, the morning highs were never again approached, and in the end, the market gave up a bit more ground.

We are still dealing with some key levels here, namely NAZ 2744 (tagged on the number today) and 1312 on the S&P 500, which could serve as meaningful pivots going forward.  We’ve pulled back for three days into those levels, and they may produce a bounce. However, if we do see them get broken, particularly on a closing basis, it will be our signal that stocks are headed for lower levels in search of buyers.

The prevailing mood seems to have dampened over the past few weeks.  We’ve seen this market go from dips getting bought, to an environment where bounces are getting sold.  That’s a subtle change of character, which requires that we stay attentive at this point and await further technical clues.  I’m doing my best to keep an open mind here, because for the time being it’s still pretty much a range-bound market (with prices at the lower end right here).

Quite a few more charts emerged tonight with quality setups, including a pair of swing candidates I’ll cover in the video.  What you will notice, though, is that I’m eyeing plays in both directions, as this market environment necessitates it right now.  The good news is that it means there’s potential opportunity on both sides of this market, and that means profits can be had even with an overall hedged stance.

I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: BHI, NOC, FMC, DKS, JOYG, ARBA, XEC

Swing Trading Candidates:

ARBA has pulled back from its high two weeks ago, but has done so in a quiet manner and is currently holding support.  This stock overall looks range-bound, but if it can cross the descending trend line to the top side with a push past $32, it has room to move back toward the upper end of the range.  I’ll be using that level as a trigger for a buy. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

XEC remains caught in a downtrend after failing at resistance in early April. Since then, the stock has seen multiple waves of selling, and currently rests just above a key level.  A break through support at $89.00 could easily spark another wave of selling, so I’ll be going short if this stock undercuts that level. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.

Chart courtesy of TeleChart

[table “51” not found /]

The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.

Trade Like A Bandit!

Jeff