My Swing Trading Approach

I closed out Square (SQ) yesterday for a +6.7% profit and Netflix (NFLX) for a +1.6% profit. I tried a short on the market when it looked like the market might actually breakdown early on, but it didn’t materialize into anything. A lot of major earnings reports coming out this week, so I will be trying to tippy-toe through them and not get to bullish/bearish on this market. 

Indicators

• Volatility Index (VIX) – Huge early on, and back over 20, but as we have seen so much of recently, the price action faded and gave up much of its gains on the day. 
• T2108 (% of stocks trading above their 40-day moving average): Barely any pullback and breadth remained impressive despite a 21 pullback. The indicator still sits at 75%. 
• Moving averages (SPX): Price closed a shade below the 5-day moving average yesterday, but held the 10-day. 
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Sectors to Watch Today

Real Estate and Staples were the the only two sectors to finish in the green yesterday. While Energy, Healthcare, and Technology all struggled and were the market’s weakest sectors. No major problems on the charts from yesterday’s pullback.   

My Market Sentiment

We are coming up on Apple (AAPL) and Facebook (FB) earnings today and tomorrow. This will make for a very interesting two days on the Nasdaq and market as a whole.  The market is quite overbought, but these are two stocks that have been hammered much more than most stocks over the past four months and could be setting up for a rally of their own. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 10% Long.

Recent Stock Trades – See My Past Performance Here.