My Swing Trades

I’ve taken it easy the past few trading sessions, as I used the time away from the market to re-energize and refocus my efforts on closing out 2019 on a positive note. With that said, the market continues to show a strong bias to the upside, and I will continue to trade in that direction. I am positioned to the long side as well, with the exception of a small position of puts in Canopy Growth (CGC), which hasn’t done much for me at the moment. I will look to ride my current crop of positions tomorrow, and will consider maybe one additional long position.  

Indicators

• Volatility Index (VIX) – A much needed bounce, that came with Friday’s half day of weakness. A 7.4% bounce to 12.62. 
• T2108 (% of stocks trading above their 40-day moving average): Chart is not printing a correct reading, so I’ll skip this chart today. 
• Moving averages (SPX): Currently trading above all the major moving averages. 
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Sectors to Watch Today

Every sector was lower yesterday, even though it was the safe sectors that showed relative strength. Energy – I can’t stress this enough – stay away from the sector. Absolutely manic in its price action. I like Friday’s pullback in the Financials to the 5-day moving average. It looks ready to pop. Same can be said about Technology and Discretionary while I would stay away from telecom as continues to decline for a fourth straight week. 

My Market Sentiment

I think Friday was a much needed pullback. The market continues to run hot, but as long as the Fed continues QE, this market should keep marching higher. Over the years, the first day of the month tends to have bigger price moves than the rest of the month and we are setting up to see the same again today. 

• 4 Long Positions, 1 Short Position.

Recent Stock Trades – See My Past Performance Here.