Swing Trading Strategy:
Closed my last remaining half of the Splunk (SPLK) trade yesterday at $161.32 for a +9% profit. Also made a nice day-trade in Tesla (TSLA) that I scaled out of for a gains that were as high as +11%. One of my short positions was also stopped out – PNC for a -3% loss. I added a couple more long positions yesterday too.
Indicators
- Volatility Index (VIX) – Declined for a fourth straight day – taking another 1.3% decline and pushing it back below 15 to 14.96.
- T2108 (% of stocks trading above their 40-day moving average): Breadth in the market was notably weak yesterday despite the market rallying for a fourth straight day. A decline of 4% was also had on the T2108, following a sell-off in small caps.
- Moving averages (SPX): Trading above all the major moving averages.
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Sectors to Watch Today
Six of the eleven sectors traded lower yesterday, while Telecom and Technology lead the way. Financials saw a reversal at new all-time highs, and Energy, which I have come to hate just for the lack of conviction on any kind of bounce, managed to reverse Wednesday’s gains as well.