Author Archive for Jeff White
Jeff White is the founder of www.TheStockBandit.com, a nightly newsletter for active traders. He has been trading his own account for over a decade and currently trades full time in Texas.
July 2010 Swing Trades – Video Review
August 17, 2010 at 12:57 pm
July started out with new correction lows, elevated fear, and charts which looked awful. It ended much better, with a solid rebound taking place throughout the month. That spelled opportunity, which was nice.
Over at the main site, we posted another good month of trading to build even more consistency as we took a stick-and-move approach. That involved both long and short-sided plays, most of which worked out quite well. We took just a couple of hits, both of which were kept to a minimum, and easily overshadowed by all the other profitable trades.
So in this post, I just wanted to give you a look at how each trade unfolded and walk you through not only the entries and exits, but also the rationale behind each play.
Let me suggest going full-screen with the ‘HD’ option for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-15-2010
August 15, 2010 at 1:21 pm
The first serious pullback in over 6 weeks arrived last week as the major averages came under pressure. Rising trend lines were broken, and cash was raised in light of renewed market concerns.
Short-term uptrends have now been broken, but that doesn’t mean the recovery is necessarily over for this market. The July lows are posing as intermediate-term lows, and if those zones are able to hold, the buyers will be able to breathe a sigh of relief.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me suggest going full-screen for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Reliable Technical Action
August 12, 2010 at 8:22 am
I was pointed to a post earlier today which I couldn’t disagree with more. The author opined that trading this market is a ‘waste of time’ and that the ‘real’ money won’t be made until a month or two from now.
If that’s your attitude, you’ll be exactly right. Attitude is everything – especially in trading.
Using broad, absolute statements to ignore what’s right in front of you will help you be correct – only problem is, you’ll make no money trading. And isn’t that what trading is about? I’d rather make money than be right.
It’s dangerous to adopt the ‘waste of time’ mentality, now or at any other time. Someone’s always making money, and therefore opportunity always exists. Right now, whether you’re a day trader or a swing trader, this market is moving plenty right now. We just rallied 12% in 6 weeks – how is that not enough? If you can’t pull some good trades during a period like that, then this game isn’t for you anyway.
Beyond that, the technical price action of late has been textbook – does it get any better than that?
We’ve seen multi-day rallies followed by shallow pullbacks, with higher highs and higher lows established along the way. An uptrend line was tested several times before finally breaking Wednesday, and the reversal which has followed has been very decisive. So whether you prefer the long or the short side, there’s been ample opportunity for you.
Here’s a closer look for you:
Finally, don’t be delusional enough to think you can call weeks in advance when a ‘real’ move will begin. Remember, the market caters to nobody. It’s not about being wrong or right on the timing either, it’s more about wasting the time between now and then by waiting and not watching for opportunities which are surfacing regularly.
Stay on your toes out there, and shun all excuses – a lack of success can’t be blamed on circumstances. If you’re focused and you’re attentive to the price action, you’ll get paid for your time instead of thinking it’s a waste.
Trade Like a Bandit!
Jeff White
Trader, Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Video Review of the Indexes 8-8-2010
August 8, 2010 at 12:58 pm
Last week proved to be another healthy one for the bulls. Quite a bit more happened than it appeared on the surface, as the indexes moved higher, tested uptrend lines successfully, and based quietly beneath key resistance zones. The coming week may be pivotal for this new uptrend, as we’ll face an FOMC day on Wednesday, as well as the fact the bulls have an opportunity to push through key levels in the NAZ and S&P 500.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Ashland Still Has Room
August 5, 2010 at 6:52 am
We’ve seen persistent strength in this market since the July 1st low, and while the long side has been the one to trade on, it’s still important not to chase extended names.
Fortunately, looking through hundreds of charts each day can still yield several opportunities, particularly if you know what to watch for. Too many traders fail to recognize the value of rest for a stock, and if it hasn’t moved in several days they tend to forget about it. My take is that those rest phases can be the pause that refreshes, especially if there’s been some recent momentum present.
Today I’m bringing you one such stock. It’s been climbing very well since turning the corner several weeks ago, and has also done an excellent job of digesting advances with these rest phases. There’s still some room for this one in the short term, so it’s on my radar.
I’m watching ASH for a push through short-term resistance at $53.10 for a trade. One higher low has already been established, and the stock has been basing for the past 8 sessions after a solid advance. This one looks like it may make a push toward the downtrend line which has been in place since April, which also offers a logical spot to book gains (if reached) in the $55.50 area.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
Homebuilder Stocks on Solid Foundations
August 3, 2010 at 7:12 am
The stock market is often times simply a market of stocks, meaning that it’s necessary to sift through them all in order to find some which appear tradeable.
Occasionally though, we notice sectors moving in tandem, giving us multiple opportunities in the same group. That sometimes gives us a chance to identify leaders and laggards, while other times it shows us greater confirmation that something is developing.
Right now is one of those times for the stocks of homebuilders.
Most of them have similar chart patterns, which is the rounded bottom pattern (or rounded low), and they’re setting up to confirm bullish reversals in the coming weeks and months.
The (Floor) Plan
Moves which are expected to take up to a couple of months is a longer timeframe than I generally tend to trade, but the nature of this pattern is such that it should take longer to play out. So, my plan in trading these is to establish small positions, add to them upon further technical evidence of a trend shift, and manage them as position trades. Because I’m an active trader and expect these to work over the course of a couple of months, I don’t want them on my screen every day. As a result, I’ll be utilizing long-term retirement accounts as the ‘home’ for these homebuilders.
Keep in mind, I’ll be maintaining protective stops just in case these patterns don’t pan out, and I will be starting small and looking to add later. But the technical foundations are there for these longer-term patterns to play out, and I like the risk/reward they’re offering.
Here’s a quick rundown of several I’m seeing…
LEN trended lower from its April price spike to fill a gap from January, which is technically healthy. In recent weeks, the downtrend has stalled as price is stabilizing just beneath resistance:
DHI pulled back enough to take out its December 2009 low, and not by much. That kind of move often shakes out some traders who will now likely add to the strength by jumping back on board if this rounded low pattern is confirmed:
HOV briefly undercut support from early this year on its latest selloff, which was a nasty 57% correction. Price has stabilized in recent weeks with some short-term higher lows, and this one still has plenty of room to rally:
PHM trended persistently lower after topping in late-April, and two positive things have happened since then. First, the decline has made no progress in 2 weeks. Second, a rounded low is in place, which if confirmed, could ignite a solid push higher as this one retraces at least a portion of the May-July selloff:
RYL sold off sharply from its April highs, but for the past several weeks, price has stabilized and established support. A move up through resistance would set this stock on the path toward higher prices:
MTH has found recent support after a big correction, and here again, the rounded low would be confirmed with a move up through resistance:
KBH was cut in half from its April peak to July low, and in recent weeks has carved out support. Price is now beginning to curl higher, and a move through resistance would confirm that:
SPF gave up 58% during its harsh selloff between April and July, but now is gaining strength and looking to accelerate higher if resistance is cleared:
Finally, TOL is looking good after finding support in July and creating some short-term higher lows in recent weeks. A push through resistance would free up this stock for higher prices as well:
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
Video Review of the Indexes 8-1-2010
August 1, 2010 at 11:25 am
A short-term peak was marked last week with Tuesday’s gap higher, and as per my tweet, it invited some profit-taking. That sparked a pullback into Friday’s lows, where dip-buyers closed the opening gap.
That begs the question of whether the dip has been completed, and more importantly, is this market poised for another push higher? Well, as you might expect, I’ll cover that in the video.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Trade Like a Bandit!
Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com
Are you following me on Twitter yet?
