Good evening StockBandits!

The rebound from the lows of last Tuesday came under some pressure Friday, but today they officially failed.  New pullback lows from the May peaks were made in today’s session, highlighted by an opening gap to the downside which never saw a serious attempt at a fill.  Instead, the indexes lingered deep in the red all day, never getting far from where they began the session.

Of course, today’s declines and subsequent new pullback lows confirms more lower highs, giving us now a pair of lower highs and a pair of lower lows.  Whether the pressure stays on remains to be seen, but one thing’s clear right now: this market is still correcting.

I care not if this market turns a meaningful corner (in either direction), or if it becomes range-bound for a period of time.  What I do care about is the quality of the trading opportunities at any given moment.  Tonight, the only setups I like are those which can only be trusted for brief moves, so I’ll be a day trader on Tuesday.  When it comes to high-quality patterns available for multi-day plays, they’re just not there tonight.  That could all change in a day or two, and certainly may, but I don’t ever force trades in an attempt to get some overnight exposure.

Given the lack of setups tonight, as well as the fact this market has made a decent downside move over the past couple of sessions, it’s a very tough spot to do much.  Instead, my aim is on capital preservation while this (thus far) minor correction continues to play out.  That will leave me best-positioned to take advantage of the next opportunities which come along by having cash on hand, as well as preserve my objectivity by not chasing short sales here or by attempting to catch knives and go long in hopes of a quick bounce.

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: TUP, BVN, FTO, PANL, CAM, BGC

Swing Trading Candidates:

NONE TONIGHT

[table “50” 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 the indexes broke key levels with weakness on Monday and early Tuesday, but from there we saw an oversold bounce kick in.  Stocks reversed higher into Thursday, but volume backed off as the rebound progressed.  Then the week ended with some Friday selling, taking the indexes right back to key levels as we headed into the weekend.

In the short term, the daily charts of the indexes show confirmed lower highs and lows since the beginning of the month, and the bounce we may have just completed could add to the list.  That may, in turn, prompt more profit-taking on the part of the bulls if a test or breach of the May lows comes along.

Zooming out on the charts, this pullback could prove to simply be a dip within the longer-term trend.  Only time will tell for sure, but as short-term traders, right now it certainly seems prudent to protect capital and wait for better momentum in the overall market before committing directionally to individual plays for anything longer than a few hours.  Swing trading is best done with the proverbial wind at your back, which is a trending market.  We’ve seen the indexes work their way slightly lower in recent weeks, but are clinging to support zones at the moment and still remain range-bound.

While we wait for better signals and momentum to reappear, my plan is to stick primarily with shortened timeframes for new trades.  I also encountered quite a few sloppy charts of individual stocks, making it harder right now to locate setups for plays which have quality risk/reward profiles associated with them.  We have Memorial Day next week, so it’s possible we see this range persist a little longer, and that means patience is still a virtue.

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: SSW, ALTR, IBB, ADS, VLO, EQT, KLIC, BVN, SINA, LVS

Swing Trading Candidates:

NONE TONIGHT

[table “49” 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 continued their bounce today from the lows set on Tuesday, albeit in a lackluster fashion.  Not only did the net changes fail to impress, but we saw volume diminish across the board.  Toss into the mix the fact that we still have plenty of overhead at levels above from recent weeks, and there are plenty of reasons not to trust this bounce.

Nothing is out of the question, of course, as this is the stock market and anything is possible at any time.  However, gauging from the price action, the volume, and the overall conviction this market seems to have, there’s no evidence mounting as of yet to suggest we’re on the verge of gaining momentum in either direction.  In other words, we could see this range-bound price action persist a bit longer.

Tomorrow is of course options expiration day, which is frequently influenced by the role of derivatives, and thus often difficult to read much into.  Then next week is followed by a 3-day weekend and the Memorial Day holiday, which is often a signal that summer is beginning.  So, with range-bound price action, options expiration, and then a major holiday all in a few days, it’s a good time to lower expectations in the coming days.

I do expect the summer to have plenty of activity and ongoing opportunities, so please don’t misinterpret what I’m saying.  What I’m doing my best to clarify is that over the next few days, barring a big change in the price action, we may not see much momentum surfacing.  If the market happens to surprise us and produce it, great.  Otherwise, we’re preparing to be selective and patient until the next few days have passed.

Be sure to check out today’s post covering Setups Under $20, as I know quite a few enjoy the additional ideas.

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: NUAN, HOC, SOHU, GG, CAM

Swing Trading Candidates:

NONE TONIGHT

[table “48” 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!

After becoming short-term oversold from the 3-day slide which began Friday morning, stocks bounced today.  The gains weren’t overly impressive, but the market did a nice job of holding onto its gains throughout the session.  That means we could see some follow through going forward, but there’s still plenty of congestion at higher levels which could serve as resistance.

While the bulls may be encouraged by today’s return to the trading range, they still have much to prove.  Today’s advance came on lighter volume, which is to say there was narrower participation in the buying.  We’re also still a considerable distance from the upper end of the range, so if the bulls intend to create new highs soon, they’ll need to bring their best.

The back-and-forth nature of the current environment reminds us that follow through is harder to come by in a trendless market.  That also means greater selectivity is likely to be rewarded when it comes to multi-day plays.  We’ve caught some nice day trades of late though, so there are still opportunities for those willing to adjust to current conditions.  I do expect to see more swings coming available in the days ahead, but for now high levels of cash are warranted by this price action.

By the way, I posted a Trade Review of BIDU today over on the blog, and I know quite a few of you were involved in that trade.  Go check it out for a recap, as well as some lessons to take away from 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!

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Video Stocks Discussed: AZPN, KCI, WBC, CAM, NUVA

Swing Trading Candidates:

NUVA has pulled back for a little more than a week from its highs, but hasn’t given up a lot of ground relative to the recent advance.  A push north of the trend line at $31.60 will trigger a buy for me as this one gets back on the move.  Initially I’ll look for a test of the recent high, followed by a move into the unfilled gap from last fall. 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 “47” 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 broad market weakness we saw on Friday carried over through Monday and into this morning, sending the indexes to new pullback lows from their May peaks.  We saw the April 20th gaps begin to get filled, but stocks stabilized and partially lifted in the afternoon to erase a fair portion of the early deficit in each of the averages.

Whether this afternoon’s rebound was due to meaningful buying or simply a bit of an oversold bounce remains to be seen.  What is still worth noting here, though, is the fact that we remain beneath recent support zones.  Those areas are 2802 for the NAZ, 1332 for the S&P, and 825 for the RUT.  So long as prices are under those levels, they’re more likely to serve as resistance on bounce attempts.

Over the past 2 1/2 weeks, we’ve seen both a lower high and a lower low emerge on the daily charts of the indexes.  That obviously points to at least a short-term correction, but the jury’s still out when it comes to this being a major turning point or not.  Rather than predict the next move (which isn’t necessary), my plan here is to continue approaching this market with caution until it gives some technical reasons not to.

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: PPO, REG, VNO, SREV, HP, SLB

Swing Trading Candidates:

NONE TONIGHT

[table “46” 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 gapped lower to start the week, and the buyers emerged once again as support zones were tested and held.  That provided a decent lift from the opening lows, and each of the averages moved into positive territory except for the NAZ.  The bounce was unable to persist, however, and by late morning the market started working its way lower.  We trended down in the afternoon in an orderly but steady fashion, leaving the S&P 500 and NAZ beneath key support zones.

To see those zones get defended multiple times in the past couple of weeks, only to fail today, gives today’s break some validity.  Time will tell, but for the time being we have a downside resolution to the recent indecision, and that’s not a technical event we want to take lightly.  This appears to be the market’s way of following the leaders we’ve recently seen break down (AAPL, BIDU, SOHU, NTES, UA, OPEN, to name a few), so the big question at this point becomes “where do we stop next?”

There’s no easy answer to that, but we do have some levels to keep an eye on if/when we approach them, which I’ll cover in tonight’s video.  Suffice it to say though, cash is a good thing to have on hand right here as the market threatens to correct further, and it’s important to remember the role which good defense plays for us as traders.  Capital must be protected first and foremost, with profits being a secondary objective.  We’ve caught some good moves on the short side since last week, but if the pullback continues, we should see plenty more opportunities in the days and weeks ahead.

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: VNO, XOP, XLE, APC, HP, XEC

Swing Trading Candidates:

NONE TONIGHT

[table “45” 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!

Short-term trading ranges persisted last week with plenty of back-and-forth price action yet no follow through.  The DJIA saw only a 43-point net change on the week, while the NAZ was up less than 1pt and the S&P shed less than 3.  Clearly, the indexes marked time while waiting for a notable catalyst to come along.

While caught in these ranges, we’ve seen more tests of support than challenges of the highs.  That doesn’t necessarily mean we’re headed for a downside resolution, but it does mean prices are knocking on the door.  Nonetheless, the dip-buyers are still defending support zones and that means the chance of this pullback resulting in another higher low is still alive.

As is to be expected, while the market shows indecision, many charts of individual stocks are too.  We’ve seen some sectors weaken (ex: commodities, Chinese internet, agricultural stocks), while others have held up well and are building bases (ex: semiconductors, real estate).  That means it’s a market of stocks right now, making it more important to select timeframes carefully rather than expecting broad market momentum to bail out trades initiated via poor timing.

At this point, I’m working my watch lists regularly, adding and removing stocks which belong there, but not eager to aggressively add much exposure in either direction until this market gets to moving better.  Capital preservation is important right now, as these ranges can really chop you up.  So, stick with clean patterns where momentum is present, and otherwise sit patiently while we wait for better conditions to arrive.

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: HS, MCHP, BHI, VNO, ALTR, RNR, NOG, SM, PXD

Swing Trading Candidates:

NONE TONIGHT

[table “44” 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 gapped down this morning and saw some early downside follow through, but the first bounce proved to be an upside reversal.  By late morning, the gap had been filled and the market was able to trend higher into the afternoon.

Today’s dip was yet another test of the lower ends of the trading ranges we’ve been eyeing for the past week, and to see a rebound from there shows that the buyers are still defending (and thus validating) those areas.

The daily charts are starting to look more bullish after another successful test of support, but so far we’re still range-bound.  It’s important at this point to continue respecting short-term support & resistance zones, knowing that until we see a solid close beyond one of them we could see continued back-and-forth price action.  Just as Wednesday’s weakness was convincing, so was today’s strength.  Such is the case when caught in a range of indecision.

Each of the indexes still have a very good shot at this dip resulting in a higher low, and many individual charts are taking on a similar look.  While we await a decision from this market range, my focus will be on either setups which look good for quick one-day moves, while staying selective when it comes to multi-day plays.  In time, we should see plenty more action, but at the moment lasting follow through has yet to emerge.

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: IACI, ALTR, REDF, CTRP, NOG, X

Swing Trading Candidates:

NONE TONIGHT

[table “43” 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!

Tuesday’s gains were erased today as the market came under pressure.  Whether it was profit-taking from the bounce of the past few sessions, or a response to the rally in the dollar, the end result was lower prices for stocks.  The selling was orderly, and things did stabilize in the afternoon, but with volume picking up it proved to be a day of distribution.

Despite today’s decline, the indexes remain short-term range-bound here.  We’re off the highs set early this month, yet holding above some key levels of support.  At some point that will change, but in the meantime we can continue to expect a lack of follow through until we see a close outside this range.  Trading ranges are periods of indecision, so naturally it follows that shifts of direction are more frequent within the range.

Tonight in looking through many charts, I found only a few of interest for tomorrow’s session.  Each of those will only be for day trades, as I simply don’t like the patterns enough for swings, plus the necessary exits which would accompany them if I took them for multi-day moves.  So, I’ll manage my existing overnight positions (see the Hit List for details) and otherwise look to initiate trades where I can better limit my risk through an intraday timeframe.

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: VMED, RYN, MEE, NUE, SCCO, MON

Swing Trading Candidates:

NONE TONIGHT

[table “42” 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 positive start this morning found follow through today as the buyers continued to put cash to work after last week’s test of some key levels.  Mid-day, we saw stocks stabilize and enter into a trendless range, yet they held their ground in positive territory.  As the day progressed, some afternoon buying took the market to its highs of the session, taking us back to within a stone’s throw from the highest closes from early this month.  Volume returned as well, which helps add technical validity to today’s strength.

At this point, we’re still range-bound, but the notion of a higher low on the daily charts of the indexes looks like a much easier idea to embrace.  We’ll of course need to see new highs made in order to fully confirm those higher lows, but for now they’re holding and the buying pressure is returning.

I’ve been sticking with day trades of late due to the market indecision, waiting for either better momentum to arrive or better setups.  Tonight I’m seeing some good setups, so I’m adding them to the trading list for potential swing trades.  If they all trigger, I’ll still be hedged with both long and short-sided exposure, and will look to commit more fully to a direction if the market is able to again make new highs.

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: GPOR, IPI, NOV, SOHU, RSH, CTRP, AGU, SINA, NTES, SNDK, MOS, BIDU

Swing Trading Candidates:

SNDK is trying to break a descending trend line here which would help to further establish a higher low from last week.  I’m looking to get long if this one can take out today’s high at $48.10. 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

MOS broke major support last week and has attempted to reclaim it without success.  This one looks ready for another leg down, but needs to undercut short-term rising support to get moving again.  I’ll go short if this one breaks $70.85. 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

BIDU made new highs a few weeks ago but has seen a substantial change of character since then with some heavy distribution and only a partial rebound.  This relative weakness to the NASDAQ is in keeping with many other Chinese internet stocks.  I’ll be going short if this stock undercuts the trend line at $139.50. 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 “41” 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