Watch resistance at the 50 day moving average

It had been acting as support prior to its break last week, but now the 50 day moving average has firmly converted itself into resistance overhead. Following the break last Tuesday, it has gotten close to pushing back above the 50 day moving average but each time it even gets close to the MA it has resulted in a sell-off, especially yesterday which showed strong potential to break through it prior to the afternoon meltdown. 

This kind of market environment can be frustrating for traders, but the key is not to spend your entire day trading all over the place, thinking that will get the market to break through the resistance or sustain a rally. 

Pick and choose what stocks you are going to trade during this time, careful with the entries. But above all else, don’t overtrade and don’t chase big moves in stocks. Find opportunities in stocks coming right out of consolidation. 

And remember too, while the action in this market has been bearish in 9 out of the last 13 trading sessions, they have yet to really push this market lower. One big rally and you wipe out most of the month’s losses if not all of them, depending on the size of the rally. We are also trading inside of a massive bull flag that should price action breakout to the upside, should lead to a big expansion in price across all the indices (except the Russell of course, because the market loves to whip out the beating stick on the small caps). 

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 5  Long positions

Recent Stock Trade Notables:

• Las Vegas Sands (LVS): Long at 57.24, closed at 56.53 for a 1.2% loss.  
• UPRO: Long at 91.94, closed at 96.54 for a 5.0% profit.
• Alibaba Group (BABA): Long at 105.736, closed at 108.22 for a 2.4% profit. 
• Facebook (FB): Long at 134.27, Closed at 139.23 for a 3.7% profit. 
• CDW Corp (CDW): Long at 58.65, closed at 58.91 for a 2.7% loss. 
• Redhat (RHT): Long at 82.41, Closed at 83.53 for a 1.4% profit. 
• Ambarella (AMBA): Long at 57.15, Closed at 55.52 for a 2.8% loss. 
• Alibaba Group (BABA): Long at 104.73, closed at 106.05 for a 1.3% profit. 
• Broadcom (AVGO): Long at 218.63, Closed at 222.71 for a 1.9% profit. 
• American Airlines (AAL): Short at 44.76, Closed at 44.03 for a 1.6% profit.
• UPRO  (Day-Tade): Long at 95.35, closed at 96.50 for a 1.2% profit.
• OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss. 
• FNSR: Long at $34.25, closed at 34.70 for a 1.3% profit. 
• UPRO  (Day-Tade): Long at 96.92, closed at 98.03 for a 1.2% profit. 
• JP Morgan Chase (JPM): Long at 87.21, closed at 89.67 for a 2.8% profit. 
• Chevron (CVX): Short at 110.03, covered at 111.85 for a 1.6% loss. 
• Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit. 
• Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit. 
• Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss. 
• Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit. 
• Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit. 
• Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.