Swing Trade Approach:

It was a fairly quiet day of trading for me today. I did add two new trades to the portfolio, have tightened the stops on others, and will be taking profits in other trades in the days ahead, simply because I won’t be holding them through earnings. One for instance is Uber Technologies (UBER), and I am up about +24% on that trade. 

Indicators

  • Volatility Index (VIX) – Despite an attempt early on to lose the gains from Friday, the VIX indicator didn’t give up much of its massive gains from Friday, dropping only 4.6% down to 17.97. 
  • T2108 (% of stocks trading above their 40-day moving average): A respectable bounce of 8% today, back above 40% to settle at 41. Nothing major in terms of recovery, but much better than anything seen in the past two weeks. 
  • Moving averages (SPX): Unable to hold the move above the 5-day moving average, and now wedged between the 20-day and 50-day MA’s. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology was one of the weakest sectors on Friday, was able to bounce today and lead the market higher and held the rising trend-line off of the October lows. Energy remains a disaster, and likely to test the August lows. Staples showing somewhat of a double top pattern, and remains very weak in its overall chart, despite today’s overall market strength. Utilities still the strongest sector. Financials hasn’t improved at all, and I think it should go back down and test the 200-day moving average. patterns to profits training course

My Market Sentiment

The daily candle on SPX and the rest of the indices, doesn’t suggest this market has completely put the fears of the coronavirus behind it just yet. As a result, I am still considering today’s bounce, a dead cat bounce. swing trading strategy outlook 586