Swing Trading Strategy:

Nothing major happening in my portfolio yesterday, but I did have a number of positions rally hard for me – most notably was the +20% in gains currently in the portfolio for Virgin Galactic (SPCE). Stopped out of a short position Corning (GLW), which annoys me on a day like today, when the market finally attempts to push lower. None of my trade setups both long and short triggered yesterday. Raised the stop-loss on a numer of positions for today. I want to see whether the dip buyers jump in on this morning weakness, and if so, then I may be tempted to add a couple of trade setups to the mix today. 

Indicators

  • Volatility Index (VIX) – Another bout of selling yesterday with a 9.5% decline that took the indicator to 13.74. Still plenty of room for further downside in the VIX, as it tends to find it bounce in the 11-12 range. 
  • T2108 (% of stocks trading above their 40-day moving average): A 6.3% rally but still well off of the highs achieved back in January. Even though the stock market is at all-time highs, stocks as a whole are no where hear the highs they achieved back in January in the T2108. Current reading is 55%. January’s high was 72%
  • Moving averages (SPX): Trading above all the major moving averages. 
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Sectors to Watch Today

Discretionary was the market’s big winner, followed by Energy and Technology. Financials, Utilities and Staples either didn’t participate in the rally yesterday, or grossly lagged it. Breadth was quite poor in the market yesterday despite the market being up as much as it was. Adancers only closed the day with a 17:11 edge over all. Typically I look for at least a 2:1 reading. 
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My Market Sentiment

swing trading strategy outlook 593