Swing Trade Approach:
Big day for the market yesterday! But for me? Not so much. Software stocks all took a hit across the board, and that had been my bread and butter over the past couple of months. However, I did book +24% in my UBER trade that I had been holding since December, and a +15% profit in half of my trade in Smartsheet (SMAR) and +6% in Virgin Galactic (SPCE). My short position American International Group (AIG) was stopped out for a 4% loss. I’m looking to play the Energy sector as a potential bounce play and lessen my overall exposure in Technology as well as add more exposure in Industrials.
Indicators
- Volatility Index (VIX) – Down for the fourth time in the last five trading sessions with a 5.6% decline.
- T2108 (% of stocks trading above their 40-day moving average): Massive rally in this indicator of 15% taking it back up to 54%. Back to the highest readign since January 23rd.
- Moving averages (SPX): Trading above all the major moving averages.
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Sectors to Watch Today
There was some notable rotations yesterday where money flowed out of Technology and Discretionary and into Energy, Materials, Financials, Healthcare and Industrials.