My Swing Trades

I made a quick day-trade in Pure Storage (PSTG) on Friday for a quick +1.8% profit, while adding two new swing-trade long positions to the portfolio. I’m leaning slightly bullish here, and may even add more long exposure from the Tech sector tomorrow. The market looks primed to retest its all-time highs this week, and it comes during one of the more bullish trading weeks of the year (though don’t tell 2018 that!). 

Indicators

• Volatility Index (VIX) – Dropped another 6%. Volatility is currently gone from this market. Until you see some volume flow into this market, there won’t be a sell-off in equities. 
• T2108 (% of stocks trading above their 40-day moving average): A 4% spike on Friday, but still very weak with a reading of only 54%. 
• Moving averages (SPX): Back above the 10-day moving average but unable to break through the 5-day MA. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy remains a very difficult sector to predict, with manic like tendencies that sees price vacillate at extremes.  Safe sectors continue to be avoided as a whole by investors, and Financials and Industrials are looking to resume their uptrend of late. Discretionary may look to take anther stab at breaking through long-term resistance. 

My Market Sentiment

The pullback to short-term support over a three day period, appears to be holding and likely ready to retest the all-time highs during what has become one of the most bullish trading weeks of the year. While last  year saw the S&P 500 decline by over 100 points during Turkey week, I don’t expect anything close to that as the market was in a complete free fall heading into the week. This year, it is sitting a smidge below all-time highs.  

• 2 Long Positions, 1 Short Position.

Recent Stock Trades – See My Past Performance Here.