My Trading Journal for the Stock Market Today: 

Futures pointing lower, markets like the dip still. It seems like a recipe for a buying opportunity, but remaining disciplined in an undisciplined trading environment still requires that you maintain stops, keep them manageable, and don’t come unglued when the market does not act the way you expect it to act.  I’m still long and strong on this market, but I won’t hesitate to bail on the market if it tilts its hand in that direction. 

Going into tomorrow, I am going to be looking at the 2368 area to act as possible short-term support for the market, should the sell-off continue into the market open. Also, watch the 10-day moving average that has acted as steady support for the market of late, and closed at 2370 on Friday, and will likely open up in the neighborhood of 2374 on Monday. Volume on the SPDRs S&P 500 (SPY) on Friday was slightly above average and volume as a whole has been that way, three out of the last four trading sessions. 

Furthermore, SPX is riding a 6 week winning streak, which is very impressive but likely to see some profit taking here at some point, and could happen as early as this week. So make sure you are raising those stop-losses. 

Still only 57% of stocks are trading above their 40-day moving average. That is absolute craziness when you consider where the market is right and the kind of rally it has been on of late. On the other hand, you have the VIX that continues to get pummeled anytime it shows any signs of life. On Friday, the bears had their way with the VIX and dropped it 7% and on down into the 10’s yet again. 

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 7 long positions, continuing to tighten the stop-losses on them all. 

Recent Stock Trade Notables:

• 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.