Good evening StockBandits!
The market kicked off the new week on a sour note with a downside gap. That put the burden of proof back on the bulls as stocks were poised for a recovery. The bulls didn’t do poorly from that point, but neither did they impress. The lows of the session were established in the morning, and from there we did see a modest recovery attempt which was able to diminish the day’s losses to a minor extent. In the end, the indexes either tested or broke short-term support zones. That left the technicals slightly mixed, although red numbers were unanimous.
At this point, we’ve got two things which deserve our respect: the intermediate-term uptrend which has been so strong, and the short-term weakness which demands attention. My feeling at this point is to keep my trading timeframe abbreviated until some clarity arrives, either with stabilization above the prior pullback lows, or with the NAZ following the other indexes with a more decisive breakdown.
Tonight my watch lists are notably shorter. There’s nothing at all wrong with that, and it actually emphasizes the need to be selective at this point. There should be some good ideas emerging in both directions in the days to come, but it’s difficult to embrace a bias at this point.
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: PAY, INXN, YUM, VVUS, VMW, NIHD, LEN, YELP, PXP, BHI
Swing Trading Candidates:
NONE TONIGHT
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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.
