Pre-market update (updated 12:00am eastern):
- Asian markets are trading -1.3% lower.
- US futures are trading slightly higher ahead of the bell.
Economic reports due out (all times are eastern): MBA Purchase Applications, New Home Sales (10am), (7am), EIA Petroleum Status (10:30am)
Technical Outlook (SPX):
- Yesterday’s market action was quite a shocker overall. That was a hard move to see coming, particularly on the QE3 news of late, and strong/bullish technical analysis that suggested a move upward.
- While on the day the SPX was down -1%, that is hardly a game changer from the broader perspective of things.
- However, it does do some damage to the charts, as the 10-day moving average has been basically decimated with a test of the 20-day moving average now looming.
- Best way to use moving averages should be as sentiment indicators and not a “line-in-the-sand” type of approach.
- Volume was notably higher in comparison to recent weeks which adds more validity to Tuesday’s sell-off.
- We still remain in the upward channel off of the 6/4 lows, and we have yet to put in a lower-high. One bad day in the market doesn’t change much. But does catch your attention and therefore should be monitored closely.
- Bulls may use the 20-day moving average like they did the 10-day moving average last Thursday, to reload on the long-positions. Careful with getting too short tomorrow.
- Beyond that there is some (very slight support) at 1428. More significant support lies at 1396 and 1412.
- If the bulls put together a strong rally in response to today’s action, that would be a very, very good indication to aggressively add long positions to the portfolio. But it would need to wipe out most of the previous day’s losses.
- We’ve come well off of overbought conditions.
- Fed’s QE3 launch is going to add a lot of buying power to this market and drive more people out of interest-bearing assets and into equities in search of some kind of return.
- Going back years, there really is little in the way of resistance for the markets until it tests 1500.
- Resistance at 1437 and 1440 was broken with little problem and now becomes support.
- Upward trend-line off of the 6/4 lows has rising support at 1412.
- SharePlanner Reversal Indicator confirmed the move higher this past week.
- Nice pop in the VIX putting it back above 15.
- One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3
- If another sell-off were to ensue, watch for a break and close below 1396 for a new lower-low in the market.
My Opinions & Trades:
- Yesterday’s sell-off took us out of 5 positions 2 profitable 3 for losses:
- Sold NLSN at $29.80 for $28.70 for a 3.8% gain.
- Sold BEAV at 41.60 from 40.75 for a 2.1% gain.
- Sold TMO at 52.25 from 52.91 for a -1.1% loss.
- Sold BIG at $29.93 from $30.84 for a -2.95% loss.
- Sold LUK at $23.16 from $24.05 for a -3.7% loss.
- Current stop-losses have been adjusted across the board.
- ALXN stop-loss moved up to $112.20
- Stop-Loss for WYNN increased to $112.50.
- Stop-Loss for PNR moved to $42.50
- Remain long PNR at $43.85, WYNN at $107.47, and ALXN at $102.53
- Track my portfolio RealTime here.
Charts:

Welcome to Swing Trading the Stock Market Podcast!
I want you to become a better trader, and you know what? You absolutely can!
Commit these three rules to memory and to your trading:
#1: Manage the RISK ALWAYS!
#2: Keep the Losses Small
#3: Do #1 & #2 and the profits will take care of themselves.
That’s right, successful swing-trading is about managing the risk, and with Swing Trading the Stock Market podcast, I encourage you to email me (ryan@shareplanner.com) your questions, and there’s a good chance I’ll make a future podcast out of your stock market related question.
When should you increase your position size for swing trading in the stock market? Does the percentage that we dedicate to each of our swing trades change over the years or is it etched in stone? In this podcast episode, Ryan goes over his reason for increasing his position size in trading and what can lead a person to doing that for themselves.
Be sure to check out my Swing-Trading offering through SharePlanner that goes hand-in-hand with my podcast, offering all of the research, charts and technical analysis on the stock market and individual stocks, not to mention my personal watch-lists, reviews and regular updates on the most popular stocks, including the all-important big tech stocks. Check it out now at: https://www.shareplanner.com/premium-plans
📈 START SWING-TRADING WITH ME! 📈
Click here to subscribe: https://shareplanner.com/tradingblock
— — — — — — — — —
💻 STOCK MARKET TRAINING COURSES 💻
Click here for all of my training courses: https://www.shareplanner.com/trading-academy
– The A-Z of the Self-Made Trader –https://www.shareplanner.com/the-a-z-of-the-self-made-trader
– The Winning Watch-List — https://www.shareplanner.com/winning-watchlist
– Patterns to Profits — https://www.shareplanner.com/patterns-to-profits
– Get 1-on-1 Coaching — https://www.shareplanner.com/coaching
— — — — — — — — —
❤️ SUBSCRIBE TO MY YOUTUBE CHANNEL 📺
Click here to subscribe: https://www.youtube.com/shareplanner?sub_confirmation=1
🎧 LISTEN TO MY PODCAST 🎵
Click here to listen to my podcast: https://open.spotify.com/show/5Nn7MhTB9HJSyQ0C6bMKXI
— — — — — — — — —
💰 FREE RESOURCES 💰
My Website: https://shareplanner.com
— — — — — — — — —
🛠 TOOLS OF THE TRADE 🛠
Software I use (TC2000): https://bit.ly/2HBdnBm
— — — — — — — — —
📱 FOLLOW SHAREPLANNER ON SOCIAL MEDIA 📱
X: https://x.com/shareplanner
INSTAGRAM: https://instagram.com/shareplanner
FACEBOOK: https://facebook.com/shareplanner
STOCKTWITS: https://stocktwits.com/shareplanner
TikTok: https://tiktok.com/@shareplanner
*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.
