My Swing Trades

I didn’t take any trades today, but managed to scalp a little $ROKU on the way up in the morning, but that was about it. Still holding one long and one short position as swing-trades. At this point, any new long position in a growth stock is a high risk trade, because the upside reward at this stage of the rally will be limited in comparison to its downside risk. 

Indicators

• Volatility Index (VIX) – A very promising start for the index today, but as is always the case (literally for the last 15 trading sessions) the index sells off hard from its highs of the day. Today was no different. Yes, a lot of people short the VIX pops, and yes, a lot of people will ultimately get burned by this practice. 
• T2108 (% of stocks trading above their 40-day moving average): Breadth really sucked for the market yet again today. Fewer and fewer stocks are participating in this rally, and you are seeing a lot more people putting money into the higher beta stocks to get bigger returns. Current reading of T2108 is 58%, after falling 4% today. 
• Moving averages (SPX): Trading above all major moving averages for the 21st straight day (including 5-day MA). 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

This was quite odd, in my opinion, where 8 of the 11 sectors traded lower today, yet every index except for the Russell managed to squeak out a gain. Even more interesting is that two of the three indices were defensive sectors where traders go to find safety in stocks. 

My Market Sentiment

Moving in on almost 200 points in less than 2 months in parabolic fashion on SPX, retail investors are piling in at all time highs, I do think it is better to wait for a pullback, even if minor, before getting aggressively long again.

• 1 Long Position, 1 Short Position.

Recent Stock Trades – See My Past Performance Here.