Another Shot At The 50-Day Moving Average

Watch resistance at the 50 day moving average, take two

Everything looked fine and dandy yesterday for the market, and resistance at the 50-day moving average that I talked about in yesterday's trading plan, was going to be broken. But with 10 minutes to go, the bears dropped the S&P 500 5 points and, despite a solid rally yesterday, closed the index a half point below the 50-day moving average. 

That makes follow through today, extremely, extremely important. And that is one thing that this market has lacked of late is any kind of real follow through. The last bounce that we had on Monday, did not have that follow through and over the last two months there have been numerous attempts at a bounce but all but one of them failed to ever get any follow through the next day. The only one that did follow through was the rally off of the 3/27 lows.

You also have downward resistance off of the 3/1 highs that the bulls are dealing with today, that if it breaks would also represent a breakout of the bull flag. Once again, the bulls were above this declining resistance level, until the last 10 minutes of trading when SPX sold off 5 points. As a result, it tabled the bull flag break out as well. 

Yesterday's move, as nice as it was on the whole for the bulls, means nothing if there isn't a respectable amount of follow through today. 

S&P 500 Chart

50 day moving average take two

Current Stock Trading Portfolio Balance: 

  • 5  Long positions

Recent Stock Trade Notables:

  • 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. 

Click here to download my Allocation Spreadsheet.

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