Market Sentiment: Staying Light This Week, With Hurricanes And North Korea Threats

My Swing Trading Approach

North Korea overnight risk creates some pause for this market and the likelihood of some kind of boiling point being reached as a result of their provocations. As a result, it is difficult to get confidently long on this market, and best practice suggests playing both sides of the trade. 

Indicators

VIX - Ramped 20% yesterday to 12.23. Up as much as +14 at one point yesterday. Look to see if more risk comes about. 

T2108 (% of stocks trading below their 40-day moving average) - 11% drop, with only 44% of stocks trading above the 40-day MA. Chart suggests a dead cat bounce from the market. 

Moving averages (SPX): Lost the 5-day MA, but held everything else. 

Industries to Watch Today

Autos continue to be a solid play. Semis have some interesting setups. Trucking looks overextended and would stay away. Financials only worth playing to the short side. 

My Market Sentiment

Staying light this week, with hurricanes and North Korea threats. 

S&P 500 Technical Analysis

  • 3 long positions, 1 short position

Recent Stock Trade Notables:

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