Swing Trading Strategy:

I took partial profits in a number of positions yesterday including +6% in Thor Industries (THO), +4% in Facebook (FB) and +5% in Coupa Software (COUP). I took a loss in my first foray into the crypto world by trading Grayscare Bitcoin Trust (GBTC). I think it could bounce here, but the overnight gaps and how close it was to my stop-loss didn’t make it worth me holding. I did add another long position to the portfolio and I have 

Indicators

  • Volatility Index (VIX) – VIX managed to pop a good deal, over 8% yesterday, but well off the overall highs of the day when it gave up about 2/3’s of its overall gains on the day before the close. Downtrend off of the December 2018 highs were in play and the rejected price. 
  • T2108 (% of stocks trading above their 40-day moving average): Such an odd divergence and reason why I actually added a long position yesterday was the fact that T2108 rose 4%, despite SPX being down 13 points. A bullish divergence there. 
  • Moving averages (SPX): Broke below the 5-day moving average and likely to open below the 10-day MA today. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Real Estate, Utilities, and Financials were the big winners yesterday, while Technology took the lion’s share of the selling. Real Estate’s rebound was huge, while I would continue to remain clear of Energy and Materials. 
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My Market Sentiment

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