Almost unbelievable is about all I can say at this juncture. We already have a 25 point gain in the new swing position. This is what has made swing trading nearly impossible lately. If you did not get in on the signal, you would be chasing the position. This was both a day and a swing trade for me. I am tempted to nail the swing trade as well, but I hope to ride it a couple of days to 4500. And since we only went to a 50% position in the model, I would still like to add to it.
This feels suspiciously like a blowoff to me. The market stalled on the Weekly Expected Move high, which sits at 4395 on the Futures contract, as you can see from the chart above. 4374.50 was a good entry point for the many reasons articulated this morning. I wish the market moved more slowly and gave you more time. But it is what it is.
Market internals actually are somewhat negative for such a big move. The market is being carried by some defensive sectors and the QQQ (Nasdaq 100), which perked up on Snap’s earnings. We are in earnings season, which carries some positive tailwinds. But the narrowness of the rally (breadth has been a problem lately) and the blow-off nature of this run requires us to keep our guard up.
Have a great weekend. The Epilogues will be out soon.
A.F. Thornton