Swing High

The markets finished flat today after a relatively range bound trading session. The Financials (XLF) were the big winners today, and the Russell 2000 (IWM) also showed relative strength, which is a bullish sign. The market internals (TICK, TRIN, and VIX) all corroborated the indecisive action in stocks today.

SPY closed at support at the 50 day moving average and the 111 mark. 111.5 has proven to be significant resistance as SPY has been unable to break above it the past two sessions. On the daily chart of SPY we can see a bull flag break out and a solid run, but it was on low volume and appears to be slowing down now. Either way, it is extended at this point and I do not see a reason to enter long here. I will wait for a pull back, consolidation, or some other pattern to set up before picking up new positions.

It looks like my bullish call on UPRO on February 5 was dead right. If I did not get stopped out, I would have caught a healthy 17 point move. Right now am I analyzing why I got stopped out where I did and re-thinking the appropriateness of the stop loss I chose.

Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,

Jason

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