Swing Trade Approach:

Whoa! That was quite a day for the stock market. I was stopped out of a few positions right at the open. The big ones being Universal Display Corp (OLED) and Delta (DAL) for a  -6.8% loss and -5.7% loss (Those loser trades don’t deserve being highlighted in bold, I hate those things, and you only get the bold treatment when the stock can pull in some profits – call me bitter, but that’s how it works at SharePlanner!). Black and Decker (SWK) was also another loser stock where i took a -3.5% loss. 

But hey, I managed to close out a few winners along the way too. I closed out CGI Group (GIB) for a +3% profit and the second half of my Shake Shack (SHAK) trade for +6%. The first half netted me a +12% profit. 

Then you have my Walt Disney (DIS) Short where I closed half of that position for a +5% profit. 

I also added a couple of shorts that didn’t really do too much today, but I did buy SpaceX (SPCE) on the dip today and I’m currently up +6%

Tomorrow, if the market can show signs it wants to bounce, and the hysteria over the Coronavirus has subsided, I will probably look to add a few more positions to the portfolio. 

Indicators

  • Volatility Index (VIX) – VIX rocketed higher today – in a very impressive fashion. Up 25% today and held much of the day’s gains. The highest close since October 9th of last year. Declining resistance off of the February 2018 highs looms at 24 currently. 
  • T2108 (% of stocks trading above their 40-day moving average): The lowest print since the October 10th reading. T2108 dropped 13% down to 45%. Very poor reading, but may signal a bounce in the coming days following six straight days of lower readings on this indicator. 
  • Moving averages (SPX): Gap below and stayed below the 20-day moving average today. Another day like today, and SPX will be pushing through the 50-day MA as well. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy, Materials and Technology weighed heavy on this market. Energy is at a place where you may see a significant bounce with it testing the rising trend-line off of the August lows. If you want some risk in your portfolio, consider the bounce in Energy. It may not work, but if it does, the reward will be a doozy. 
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My Market Sentiment

Massive drop today that gave SPX its first move of over 1% in over seventy trading sessions. So you can reset those counters! Also the move in SPX over the last two trading sessions has taken SPX below the year’s opening print on the year. That means most of the gains are gone. A move below 3230 would completely erase those yearly gains.  If the bulls cannot bounce this market, then 3192 looks like the next area for a possible bounce. swing trading strategy outlook 582