Dead cat bounce until proven otherwise.

It’ll probably take the market establishing new all-time highs in order for me to not view this market rally the last two days from a dead cat bounce perspective. There has been some technical improvements, but even still, the downtrend off of the March highs are still in place. But with that said, the rising trend line that started off of the 12/30/16 lows is still holding strong too. 

Something has to give!

Watch today how the market behaves with the 20-day moving average. Failure there, could jump start renewed selling as that has been a very dependable moving average over the past few months. 

The Volatility Index (VIX) is back near recent lows or the lower part of the range. The lower 11’s continues to provide a lot of support on the index. 

stock market today

Yesterday, I was disappointed in the lack of follow through on the banking charts. I got in on JPM on Tuesday, but am already out of that for a small profit. Quite frankly, I have found very little momentum, even after all the selling had subsided in the financials. They may bounce still and that is fine, but without that immediate relief bounce that I was looking for, the big banking stocks remained quite bearish in their charts.

So I moved on to better trading opportunities. We’ll see how the day goes. If a reversal is in order, it might be time to start shorting stocks again. Until then, lets keep doing what works. 

S&P 500 Chart

dead cat bounce

Current Stock Trading Portfolio Balance: 

  • 3 Long Positions

Recent Stock Trade Notables:

  • 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.