Show some follow through

Friday’s move was quite subtle but very strong as well. What started off as a day trading sideways like each of the days of the past eight trading sessions, changed its tune in the afternoon and broke out of the short-term price range and rallied to new all time highs by the close of business. The price action is just a fraction below 2400, but the candle pattern is a clear breakout. 

Now the key today will be whether the bulls can avoid the classic head fake and instead establish a couple of days of follow through for equities that allow traders to gather some confidence in the breakthrough that has been made on their behalf. 

Despite new closing highs, the VIX rallied all afternoon as well, with a 1% move to close the day. 

The most concerning aspect of the market closing at all-time highs is the fact that only 54% of stocks are trading above their 40-day moving average. That should typically be between 70-85% from a historical context. As a result, this does make me concerned about how long this rally can go for if stocks are not participating in it, and only a few big names are pushing the indices higher. 

Keep an eye on oil as well. Flat heading into the open, it did finally show some signs of wanting to bottom on Friday and bounce hard thereafter. But whether it is a dead cat bounce or something more remains to be seen. 

No matter what, manage the risk, don’t get caught with your pants down if the market turns negative, and keep those profits in hand. 

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 6  Long positions

Recent Stock Trade Notables:

• Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
• Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit. 
• Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit. 
• Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss. 
• Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
• Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
• UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit. 
• Murphy Oil (MUR): Long at $28.69, closed at $27.89 for a 2.7% loss.
• Las Vegas Sands (LVS): Long at $57.24, closed at $56.53 for a 1.2% loss.  
• UPRO: Long at $91.94, closed at $96.54 for a 5.0% profit.
• Alibaba Group (BABA): Long at $105.736, closed at $108.22 for a 2.4% profit. 
• Facebook (FB): Long at $134.27, Closed at $139.23 for a 3.7% profit. 
• CDW Corp (CDW): Long at $58.65, closed at $58.91 for a 2.7% loss. 
• Redhat (RHT): Long at $82.41, Closed at $83.53 for a 1.4% profit. 
• Ambarella (AMBA): Long at $57.15, Closed at $55.52 for a 2.8% loss. 
• Alibaba Group (BABA): Long at $104.73, closed at $106.05 for a 1.3% profit. 
• Broadcom (AVGO): Long at $218.63, Closed at $222.71 for a 1.9% profit. 
• American Airlines (AAL): Short at $44.76, Closed at $44.03 for a 1.6% profit.
• UPRO  (Day-Tade): Long at $95.35, closed at $96.50 for a 1.2% profit.
• OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss. 
• FNSR: Long at $34.25, closed at $34.70 for a 1.3% profit. 
• UPRO  (Day-Tade): Long at $96.92, closed at $98.03 for a 1.2% profit. 
• JP Morgan Chase (JPM): Long at $87.21, closed at $89.67 for a 2.8% profit. 
• Chevron (CVX): Short at $110.03, covered at $111.85 for a 1.6% loss. 
• Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit. 
• Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit. 
• Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss. 
• Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit. 
• Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit. 
• Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.