All Entries in the "Market Commentary" Category
Video Review of the Indexes 3-23-2012
March 23, 2012 at 4:32 pm
The market churned last week with mixed results, yet it was very constructive price action from a technical standpoint.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks are building high-quality patterns, which should make for plenty of opportunities in the days ahead.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Video Review of the Indexes 3-16-2012
March 16, 2012 at 4:50 pm
The indexes were able to push past some important levels last week to continue their uptrends, and we actually saw some acceleration for the first time in a while.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks remain within uptrends, but it hasn’t been the kind of market which has rewarded buying blindly.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Video Review of the Indexes 3-4-2012
March 4, 2012 at 1:13 pm
The major averages finished mixed and little-changed last week as they primarily moved sideways to further digest some of the recent run. We’re dealing with several key levels at the moment, and despite having the technical edge, the bulls have struggled to produce an acceleration of the uptrends.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks remain within uptrends, but it hasn’t been the kind of market which has rewarded buying blindly.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
How Long are Levels Valid?
February 29, 2012 at 9:55 am
A Bandit subscriber recently asked me about levels and how long they should be watched. This was a great question, so I wanted to be sure to share this exchange with you.
Question:
Jeff, I’m new to trading (since Christmas). I’m wondering how important long term resistance levels are. I suppose it depends really on the market conditions. A skittish market probably respects them more. This market seems to be plowing on through them regardless. The NASDAQ now, is free and clear of them with its breaking through the eleven year high, unless it goes down again.
The reason I am asking is that I’m sticking to a 4 1/2 month chart and ignoring any information older than that. It simplifies things and I wonder how far back people really remember. I also am thinking the older the resistance/support level, the less significant it is. Do you think I will be ignoring less recent history at my peril? I also find that the more information I bombard myself with the less clarity I have.
Thanks
Answer:
Great question and this really deserves its own blog post so I’m glad you asked. To answer you though, here’s my take on it.
I’ll begin by saying as long as a level is being respected, it’s worth taking note of. That pertains to an individual stock which keeps knocking on the door over the past few weeks, or to an index chart like the NAZ which has just recently pushed through multi-year resistance.
So, they’re worth taking note of. As far as how important they are, let’s consider the psychology at work here, which is what it really comes down to.
Technical levels are representations of buyers and sellers, which often times base their decisions on emotions. The older the level, the less emotional significance I’d attach to it. More recent levels are fresher in terms of emotion, and therefore tend to get respected to a greater degree.
I’d say anything inside 18 months or so is game, whereas I place lower significance on multi-year levels. They may be noticed by technicians, but anyone who has held for 11yrs in the case of the NAZ isn’t likely to bail out now that they’ve finally gotten their money back – I think they’re the “invested” crowd who never truly intends to sell.
What do you guys think? What would you tell this new trader?
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Video Review of the Indexes 2-26-2012
February 25, 2012 at 11:31 am
The major averages moved mostly sideways last week with the big 3 posting only small gains as stocks rested near key levels. Each of them were able to mark new intraday recovery highs, but the strength didn’t inspire more buying and instead the market simply based overall.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks remain within uptrends, but it’s the kind of market which is rewarding some finesse with entries more often than chasing strength.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Video Review of the Indexes 2-20-2012
February 18, 2012 at 10:00 am
The market eased higher last week, shunning a Wednesday reversal which had potential to shift the landscape. However, a Thursday lift made the mid-week pullback ancient history, reminding us once again that the dip-buyers are operating in a highly aggressive fashion.
The market remains stretched here, no doubt about it, but the long side is still the side which is offering the opportunity. Until a character change comes along, you’re either long or you’re wrong. Selectivity is the key for new plays, which I’ve been noting within the member area.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Video Review of the Indexes 2-12-2012
February 12, 2012 at 3:53 pm
The market lost ground last week thanks to Friday’s pullback, but that only resulted in a 2-point S&P decline for the week. That translated into some healthy basing action which also allowed the NAZ to move back to the middle of its 8-week uptrend channel.
The NAZ tagged 11-year highs yet again, reminding us that buy-and-hold remains broken anytime people who bought in 2001 have to wait 11 years to get their money back. It’s a trader’s market right now, and it’s highly important to continue managing risk in what remains a stretched market. Selectivity is the key for new plays, which I’ve been noting within the member area.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our Sunday process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
