My Swing Trading Approach
I booked profits in Alibaba (BABA) yesterday at $183.29 for a +7.8% profit, along with Advanced Micro Devices (AMD) at $24.98 for a +3.7% profit. I added one additional position yesterday, but overall reduced my overall long exposure.
Indicators
- Volatility Index (VIX) – A much bigger pop than what we have seen in recent days, and with the market opening slightly lower ahead of the open, expect to see the VIX to climb higher in the early going today and test that stubborn 20-day moving average. Up 10% yesterday to 14.85.
- T2108 (% of stocks trading above their 40-day moving average): A small decline in the T2108 of 1.2%. Nothing to be too concerned with on the surface, however, the market’s breadth quickly deteriorated yesterday as price continue to sell off from the highs.
- Moving averages (SPX): Currently trading above all the major moving averages.
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Sectors to Watch Today
Financials saw a huge surge of buying in the early going, but they quickly gave up the large majority of their profits by the close. Technology and Healthcare are both setting up for possible evening star candle patterns or even an island reversal pattern.
My Market Sentiment
Concerning yesterday, was the notable sell-off from the highs of the day and the squandering of almost all the day’s gains. This all took place at a major price resistance level as SPX was unable to break through.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 30% Long.
