Market Euphoria still strong, but no top yet.
And that is what you have to trade right now. That doesn’t mean that with market euphoria in full blow out mode, that you shouldn’t continue to trade to the long side, because you should, but you should always be prepping yourself every day for what you’ll do, if today ends up marking the top for the market as well.
You can’t, nor can anyone else, predict when the market will eventually top out. But what you can do, is prepare as if every day could be the market’s top. Eventually, that will happen and when it does, you’ll have been preparing yourself for it, by having managed the risk of it happening along the way. As a result, that is the best and only way to predict a market top – by preparing for it every day.
Thursday and Friday’s bounce off of support was impressive. It took the weakness that was initially seen on Wednesday and turned it on its ear and instead of a break down, where the market was heading towards, we are now trading at two consecutive days of new all-time highs.
The charts suggest higher for the market going forward, but following the two day rally, we could see some sideways price action this week, until the market decides it wants more.
What would this market be, if the VIX was not trading below 10, as it is current with a -1.4% move down to 9.75. The T2108 (% of stocks trading above the 40-day moving average) is only at 55%, barely more than half of stocks are following this market higher. Still a concern, still a bearish divergence to be aware of.
Take advantage of the opportunities this market is giving you, but do so with one eye on the exits.
S&P 500 Chart
Current Stock Trading Portfolio Balance:
- 6 Long Positions
Recent Stock Trade Notables:
- AVGO: Long at 236.65, closed at 241.15 for a 2% profit.
- SPXU: Long at 16.60, closed at 16.98 for a 2.3% profit.
- JP Morgan Chase (JPM): Long at 87.84, closed at 85.98 for a 2.1% loss.
- Micron Technology (MU): Long at $29.00, closed at 28.04 for a 3.3% loss.
- Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit.
- Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.
- Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit.
- Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit.
- Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
- Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit.
- Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit.
- Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss.
- Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
- Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
- UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit.
- Murphy Oil (MUR): Long at $28.69, closed at $27.89 for a 2.7% loss.
- 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.