Today’s Trading Plan: Leave No Dip Behind

Technical Outlook:

• And just like that, without a moment’s notice, the market puts the bulls on notice with Deutsche Bank (DB) faltering. 
• The result yesterday was the S&P 500 (SPX) suddenly selling off hard and taking the whole market lower. 
• SPX looks to bounce this morning based on the futures rallying with the European market open (about 16 points higher off of the overnight lows). 
• When large banks start faltering, you have to be really careful and nimble with your trading. The overnight risks become much more elevated than usual. 
• SPDRs S&P 500 (SPY) saw its volume increase quite a bit from anything seen over the past two weeks. It was well above average as well. 
• The rising trend-line on the CBOE Market Volatility Index (VIX) provided hard support in which the VIX bounced off of yesterday – rising 13% to 14.02.
• Once again, though, at least with what is being seen in the pre-market, the bears are showing a lack of power to drive this market lower, and the bulls are popping equities higher. 
• United States Oil Fund (USO) broke the downtrend off of the August highs yesterday. The highs from September is the next challenge. Break it, and you have a new higher-high formed. 
• 30-minute chart for SPY shows a very choppy, but well-defined triangle pattern that SPX is currently trading in going back to September 6th. Watch for a break in either direction. 
• Nasdaq (QQQ) failed to reach new all-time highs and instead dropped back below its recent breakout level. 
• The number of stocks trading above their 40-day moving average dropped 21% yesterday, down to 42%. 

My Trades:

• Sold APC at $62.04 yesterday for a 4.4% profit. 
• Sold NVDA at $67.07 for a 4.0% profit.
• Sold NOW at $78.79 yesterday for a 1.0% profit. 
• Sold TTMI at $11.43 for a 0.2% profit. 
• Added two short positions yesterday to the portfolio. 
• May add 1-2 new swing trades to the portfolio today. 
• Currently 0% Long / 30% Short / 70% Cash