Swing Trading Strategy:

I closed another portion of my Virgin Galactic (SPCE) trade for +11% profit and will ride the remaining position as long as possible. Closed my short position in Dana (DAN) for a 3% loss. I closed Shake Shack (SHAK) out flat – as it just couldn’t push its way through the 200-day moving average. I’ve added two new long positions to my portfolio in the process, with additional long and short setups that I’m willing to consider going forward. 

Indicators

• Volatility Index (VIX) – Stocks gave up most of their gains on the day and with that, VIX managed to bounce off of its lows and rally throughout the afternoon for a 1% gain, while still riding the declining support off of the August highs of last year. 
• T2108 (% of stocks trading above their 40-day moving average): A respectable bounce back to 52% and once again a majority of stocks trade above their 40-day moving averages. However, this indicator strongly suggests that since late January, stocks as a whole have lost a good amount of their momentum. 
• Moving averages (SPX): Trading above all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Yesterday’s rally lacked Technology’s involvement and that is always an irritation for traders. Energy and Telecommunications led the way which isn’t ideal, because most people aren’t heavily weighted in those sectors. Much of the rally in the latter had everything to do with news out of Sprint (S) and T-Mobile (TMUS) merger news. 

My Market Sentiment