Market Update August 12th

Good Morning,

It was quite a day for the market yesterday as we saw the SPY gap up and trade sideways most of the day before we got a hard afternoon selloff. We also saw continued rotation out of the QQQ, as well as a spike in volatility. This morning we are getting a pretty sizable gap up, but we are still well below yesterday's highs. In running my scans for today, I saw mostly broken charts. There are lots of names that would look interesting but are left with big upper selling wicks. A few of these charts might be interesting if we had a flat or slightly down open, but with this gap up I'm just not seeing any A+ setups. Today I will focus on our Gn'R day trade watch list and manage my existing swing trades. SDC I will be out of ahead of earnings this afternoon, and I will be looking for an opportunity to add to UUP. The market remains in a place where we could see a sharper pullback at any time, and it is critical to be patient, selective, and small in position size in these situations.

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