Technical Outlook:
- And just like that, without a moment’s notice, the market puts the bulls on notice with Deutsche Bank (DB) faltering.
- The result yesterday was the S&P 500 (SPX) suddenly selling off hard and taking the whole market lower.
- SPX looks to bounce this morning based on the futures rallying with the European market open (about 16 points higher off of the overnight lows).
- When large banks start faltering, you have to be really careful and nimble with your trading. The overnight risks become much more elevated than usual.
- SPDRs S&P 500 (SPY) saw its volume increase quite a bit from anything seen over the past two weeks. It was well above average as well.
- The rising trend-line on the CBOE Market Volatility Index (VIX) provided hard support in which the VIX bounced off of yesterday – rising 13% to 14.02.
- Once again, though, at least with what is being seen in the pre-market, the bears are showing a lack of power to drive this market lower, and the bulls are popping equities higher.
- United States Oil Fund (USO) broke the downtrend off of the August highs yesterday. The highs from September is the next challenge. Break it, and you have a new higher-high formed.
- 30-minute chart for SPY shows a very choppy, but well-defined triangle pattern that SPX is currently trading in going back to September 6th. Watch for a break in either direction.
- Nasdaq (QQQ) failed to reach new all-time highs and instead dropped back below its recent breakout level.
- The number of stocks trading above their 40-day moving average dropped 21% yesterday, down to 42%.
My Trades:
- Sold APC at $62.04 yesterday for a 4.4% profit.
- Sold NVDA at $67.07 for a 4.0% profit.
- Sold NOW at $78.79 yesterday for a 1.0% profit.
- Sold TTMI at $11.43 for a 0.2% profit.
- Added two short positions yesterday to the portfolio.
- May add 1-2 new swing trades to the portfolio today.
- Currently 0% Long / 30% Short / 70% Cash
