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. 
• RELATED: Patterns to Profits: Training Course

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.  

My Market Sentiment