Swing Trading Strategy:

Virgin Galactic (SPCE) continues to steal the show, with another large pre-market gap higher. Still long from 18.98, with more than +60% in profits. I closed out the last half of the Apache (APA) for a manageable loss. Some negative news in the pre-market with Apple (AAPL) lowering guidance for the quarter, but considering the fact that it is only 2% in the pre-market, the fallout is well contained. Some heaviness in tech is expected relative to the other sectors. 

Indicators

  • Volatility Index (VIX) – A -3.3% drop taken $VIX to to its lowest closing reading since January 23rd. Likely that the index eventually sees mid 12’s in the near term. 
  • T2108 (% of stocks trading above their 40-day moving average): Another day where this indicator diverged from index price action on SPX. T2108 dropped 1% while the index was up 0.2%. This continues to be an on going theme since early October of last year. 
  • Moving averages (SPX): Trading above all the major moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

The market was focused again on the defensive names like Real Estate and Utilities – both of which are the hottest sectors for traders right now. Healthcare has made a solid comeback, and at its all-time highs again. Materials and Energy should be steered clear of for now. 
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My Market Sentiment

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