My Swing Trades

I booked a +3% Profit in NextEra Energy (NEE). I also jump into to Catepillar (CAT) and quickly got out at the close for a 0.1% profit, as I decided not to take the position overnight with the market selling off into the close. I may actually regret not taking that position overnight, but unless the market gaps substantially higher tomorrow morning, I may have a very good opportunity to get back in at or below where I sold it at today. Going into tomorrow, I will need to see how the futures perform. If the market decides to continue its selling, I will add some short exposure with a tight leash. If we bounce, I will look to add 1-2 new long positions early on. Either way, I expect to be more active in the market than I have of late. 

Indicators

• Volatility Index (VIX) – VIX jumped 2.7% today. Not a ton, but better price action than what has been seen of late. However, the index continued to fade with lower-lows and lower-highs all day long. 
• T2108 (% of stocks trading above their 40-day moving average): This indicator is completely falling apart here. It is now trading 5.5% lower today, and down to 51%. More amazing, it is down 11 of the last 13 days. This deeply concerns me for this market, because stocks under the surface are not holding up well.
• Moving averages (SPX): Closed below the 5-day moving average for the second day in a row (unheard of these days!), but more importantly has closed below 0.19 below the 10-day moving average, the first time since October 9th. Now, it was only fractionally, lower, so it wasn’t an overly convincing break. 
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Sectors to Watch Today

Energy rallied the market for a second straight day. Nine of eleven sectors traded lower today, despite only being down 5 points on SPX. I found it odd that three of the four weakest sectors were Real Estate, Utilities and Staples with Technology being wedged in between. So investors weren’t seeking out safety in the market today despite the market selling off for a third straight day. 

My Market Sentiment

A sell-off over the last three days, you’d expect a little more than 0.6% off the all-time closing highs. The candles are showing long shadows, off of a test of short-term support as the dip buyers continue to uphold the market gains of late. This sets up for a potential pop tomorrow, to erase the recent weakness and establish new all-time highs. 

• 1 Short Position.

Recent Stock Trades – See My Past Performance Here.