Good evening StockBandits!
The bulls maintained respect today as well as their recent momentum as they stepped in to provide support this morning. A positive start was met quickly with selling as the morning gap was filled and two of the three major indexes went negative. The sell-the-news response to the events in Greece, combined with overbought conditions from a couple of trend days higher could easily have produced a sizeable reversal to the downside. Instead, the bulls continued their run with another solid advance.
Volume remains light, but that’s to be expected around July 4th (this next Monday), as that’s usually one of the two lightest volume weeks of the year. We could see continued quiet volume for Thursday and Friday as traders lock in gains ahead of the long weekend and step away to travel or simply hit the pool and the BBQ grill. That means we’ll have to focus on price until at least next week, and possibly the second week of July. Price is of course always most important, but my point is that we can place less importance on volume activity right now due to the seasonal influence of July 4th.
The market is a bit short-term stretched here, but the bulls have momentum and don’t seem intent on relinquishing control just yet. After seeing important support held in June and then this rally, we may face some opportunities to buy dips once stocks take a breather. Shorts have been hit on this advance and will be looking to cover, and underinvested bulls will be adding exposure in case we’ve just seen a low that’s able to stick.
Tonight in the video I’m going to take an extra few minutes to explain a couple of lessons tied to two of last night’s day trade candidates. My hope is that you can learn something from it before we get to tomorrow’s plays, as the aim here is to help you grow and learn continually.
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: ZAGG, RBCN, AG, WNR, CTSH, JDSU
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.
