My Swing Trading Approach

I closed my position in SPXU yesterday to avoid a late day rally in the market (SPXU trades inversely to the market) for a +2.4% profit. Yeah, I wouldn’t mind having it here at the open still, but I can always get back in it with the right risk/reward setup. I didn’t actually add anything new to the portfolio yesterday, instead managed existing positions. Will consider getting short on this market once again today.  

Indicators

• Volatility Index (VIX) – VIX finally got that bounce and ended the six-day losing streak, but much of its gains were quickly given up. The 20-day moving average continues to provide a lot of resistance to this indicator. 
• T2108 (% of stocks trading above their 40-day moving average): Seeing a good bit of actual selling in stocks yesterday as indicated by the T2108 – at least relative to what we have seen over the past 1.5 months. It dropped 5% down to 81%. 
• Moving averages (SPX): Tested and held the 10-day moving average again as has been consistently seen over the past month. Price is tightly wedged between the 10 and 200 day moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Strong day in Utilities and Real Estate as investors piled into safe haven options, and continued the selling spree in Energy and even dragged down Technology and Discretionary too. Investors right now are looking for safe places to reside in. 

My Market Sentiment

Second straight day of selling and the first time we have seen that since 1/14/19 – an incredible run, and despite the selling yesterday, the current, short-term trend-line remains intact. There is still a desire to buy the dip in the market, and that will once again be put to the test here today. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 10% Long.

Recent Stock Trades – See My Past Performance Here.