Futures spiked overnight following a report that U.S. and China negotiators were working on a number of Memorandums of Understanding. This is the sort of news that the market has seen so regularly now that it was used for some quick scalping in hopes there will be another such setup very soon.
If you have been riding this market uptrend, the deal news was a good opportunity for a little scalping in some of the names that have become a bit frothy in the last couple days. That is what I'm doing with some big recent movers like Pyxus (PYX) , Intelsat (I) , Bloom Energy (BE) and a few others.
I don't expect any major downside while the trade negotiations are continuing but it is never a bad idea to take some partial profits when you have the opportunity.
I continue to like the stock picking opportunities in this market and some weakness like we are seeing now only makes the setups better. We need a little downside volatility to shake things up once in a while.
I've been a net seller today but am looking at a few odds and ends like Uxin (UXIN) and Adial (ADIL) . My goal is to keep my accounts as close to highs as possible and on a day like this that means protecting profits rather than looking for a lot of new buys.