My Swing Trading Approach

I’m short on this market and will continue to be so as the day evolves. I’ll have one eye on the bulls and whether they can buy the dip. I’ll look to add additional short positions if the market can find more traction to the downside.  

Indicators

VIX – Gap higher that lost all of its gains before its close. Typical behavior for the VIX. 

T2108 (% of stocks trading below their 40-day moving average) – Behaving in such a manner that recent gains in stocks are more likely to be a dead cat bounce than anything else. 

Moving averages (SPX): Back below all of the moving averages except the 200-day moving average. 50-day moving average continues to provide overhead resistance for the market.

Industries to Watch Today

Tech has shown relative strength of late. Financials look poised for a possible leg lower from here. A lot of weakening in this industry. Chemicals bullish today, though could see profit taking. Utilities will be a safe haven today, and Defense stocks are likely to see strength due to the North Korea provocation. 

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My Market Sentiment

North Korea launching a missile over Japan yesterday has created a risk-off trading environment. Always be prepared for the market to figure out a reason why it should buy the dip. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance: 

• 1 long positions, 2 short positions

Recent Stock Trade Notables:

• SPXU: Long at $14.68, closed at $15.42 for a 5.0% profit.
• Tesla (TSLA): Long at 365.09, closed at 356.15 for a 2.4% loss. 
• United Parcel Service (UPS): Long at 113.58, sold at $114.74 for a 1% profit.
• First Solar (FSLR): Long at $48.07, sold at $49.10 for a 2.1% profit. 
• Facebook (FB): Short at $168.31, covered at $170.62 for a 1.3% loss. 
• SDS: Long at $49.81, closed at $48.88 for a 1.8% loss. 
• SPXU: Long at $14.51, closed at $15.25 for a 5.1% profit.
• Zayo Group (ZAYO): Long at 32.91, closed at 33.83 for a 2.8% profit. 
• JP Morgan Chase (JPM): Long at $94.91, closed at $93.83 for a 1.1% loss.
• Bank of America (BAC): Long at $24.48, closed at $25.01 for a 2.2% profit. 
• Alibaba Group (BABA): Long at $151.69, closed at $153.43 for a 1.2% profit. 
• Salesforce (CRM): Long at $90.86, closed at $89.43 for a 1.5% loss. 
• Autodesk (ADSK): Long at $106.45, closed at $111.34 for a 4.6% profit.
• Bank of America (BAC): Long at $23.99, closed at $24.23 for a 1% profit. 
• IBB: Long at $313.18, closed at $324.25 for a 3.5% profit. 
• SPXU: Long at $14.82, closed at $14.58 for a 1.6% loss. 
• Alibaba Group (BABA): Long at $143.65, closed at $150.40 for a 4.7% profit. 
• American Airlines (AAL): Long at $49.26, closed at $51.84 for a 5.2% profit
• Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit. 
• Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit. 
• IBB: Long at $298.24, closed at $303.74 for a 1.8% profit. 
• SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss. 
• Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit. 
• Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit. 
• Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit. 
• American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
• Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit. 
• Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
• Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss. 
• Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
• SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
• JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
• Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
• Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit. 
• Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.  
• Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit. 
• Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit. 
• Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
• Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit. 
• Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit. 
• Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss. 
• Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
• Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
• UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit. 

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