Swing Trading Strategy:

Great day today. I was spooked out of a little of my Virgin Galactic (SPCE) position perhaps a little too early. I sold a third of my position for a +5% profit. Good, but I would have liked to have booked those profits may a liiiiiiittle bit later than what I did. I also added another long position that is up +3% and I have 4 definite trade setups for tomorrow, two longs and two shorts that I will automatically pull the trigger on if my price levels are hit. 

I made a hard decision today and cut half my Apache (APA) position for a -4% loss. Sucks, but the chart is showing signs of breaking, and Energy refuses to legitimately bounce. I am keeping a half position around just in case it finally does recover in my favor.

Today was a good start to the week. Nothing to really dislike with the price action on the day, and am curious if it can continue the rally through the week. Indices look healthy. Small caps a bit weaker than large caps, but overall still pretty good. 

Indicators

• Volatility Index (VIX) – Pop and drop, which has been the continual theme for years now for the VIX. Shouldn’t be a surprise at this point. 
• T2108 (% of stocks trading above their 40-day moving average): Back to 49% with a 4% intraday move. Still a bearish divergence, but let’s be real, I’ve been telling you that since October, and it hasn’t made a lick of a difference. 
• Moving averages (SPX): Trading above all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

This Telecom sector is one difficult area to get a handle on. Hard movements both higher and lower, but since September, it hasn’t actually gone anywhere. Same with Staples, except it hasn’t made a noteworthy move since December. Energy still refuses a bounce of any kind, as it is quickly trying to give up its mid-week gains of last week. 

My Market Sentiment