My Swing Trading Approach

With the weakness we are seeing early on, there is little reason for me to buy anything early on. It is possible that I will also entertain some short setups, depending on how persistent the sell-off is throughout the day. 

Indicators

VIX – Spiked early on, only to get pushed lower by the close. Down 1.1% to 9.78.

T2108 (% of stocks trading below their 40-day moving average): Down to only 50% of stocks trading above their 50-day moving average. So while the market hit new all-time highs yesterday, only 1/2 the stocks are following the market’s run. 

Moving averages (SPX): 5-day and 10-day MA likly to break right away this morning. Watch the 20-day as well. 

RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Consumer Defensive and Technology led the way. Industrials continue to hold key support, but it won’t take much for them to fall apart either. Energy saw profit taking, and Financials continue to be a problem. 

My Market Sentiment

Large gap down, which isn’t something we have seen a lot of recently. Whether the bears can keep it down is a whole other situation. Hasn’t gapped and held the gap down since August. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 7 long positions

Recent Stock Trade Notables:

• Baidu (BIDU): Long at $242.80; sold at 248.29 for a 1% profit.
• Nvida (NVDA): Long at $195.17, sold at $204.88 for a 5% profit.
• Humana (HUM): Long at $248.73, sold at $261.20 for a 5% profit.
• Square (SQ): Long at $32.92, sold at $34.36 for a 4.4% profit. 
• Nvida (NVDA): Long at $198.17, sold at $194.06 for a 2% loss. 
• Lennar Homes (LEN): Long at $56.63, sold at $58.10 for a 2.6% profit. 
• Lam Research (LRCX): Long at $185.23, sold at $192.24 for a 3.8% profit.
• Starbucks (SBUX): Long at $55.59, sold at $54.94 for a 1.1% loss. 
• Illinois Tool Works (ITW): Long at $148.63, sold at $151.23 for a 1.8% profit.
• Nvdia (NVDA): Long at $180.18, sold at $187.38 for a 4% profit. 
• Olin Corp (OLN): Long at $34.37, sold at $36.14 for a 5.2% profit.
• Lowe’s (LOW): Long at $77.97, sold at $81.52 for a 4.6% profit
• IBB: Long at $330.91, sold at $338.25 for a 2.2% profit. 
• Seagate Technologies (STX): Long at $34.35, sold at $33.89 for a 1.3% loss. 
• Wynn Resorts (WYNN): Long at $149.65, sold at $147.14 for a 1.7% loss. 
• Imax Corp (IMAX): Long at $23.03, sold at 22.26 for a 3.3% loss. 
• Marriott International (MAR): Long at $106.26, sold at $108.26 for a 1.9% profit. 
• Alibaba Group (BABA): Long at $170.63, sold at $170.29 for a 5.0% profit. 
• Workday (WDAY): Long at $106.91, sold at $104.90 for a 1.8% loss. 
• Nvdia (NVDA): Long at $170.45, sold at $187.94 for a 10.3% profit. 

See my entire swing-trading past performance here.