Breakouts: COH> 55.00 (ATR= 3.80), TRV> 52.00 (HBO), UAL<16.00, GG> 51.00 (HBO after gap fill)
Shorts: HON (SAT@ 47.00 ATR=2.35), ETN (SAT@42.00 ATR=2.53), DPS (SAT@38.00 & 200 SMA ATR=1.35), PM <65.00 (ATR=2.12), KLAC
Notes:
No long setups today as the environment is dangerous and any attempt to catch a falling knife could cause severe damage.
Industry sector strength indicates that the most defensive sectors were up yesterday confirming the bias of risk aversion. The industrials were the strongest along with consumer staples and healthcare.
Financials were weak which is a concern, the XLF also broke down and failed to breach resistance (previous support) yesterday.
VIX @ 36.00, hence the volatility. Almost double the normal move. I remain cautious trading smaller size and keeping an aye on my ATR to properly place stops and give my trades enough room. The last thing I want in this environment is to get shot on good ideas due to lack of room in placing stops.
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