Swing Trading Strategy:

The days of easy trading are but a distant memory now. This is why for the past month or so, I’ve been trying to add short exposure, gradually to the portfolio, and while it didn’t save me completely, it has certainly helped, but still some losses. Overall though, I was booking profits on a number of trades, and letting my existing shorts run. 

Now this update usually comes out before the market opened, but when you see SPX futs down 90 points, I was focused primarily on managing positions this morning, and making sure I was taking care of the homefront and the Trading Block too. Two short positions have been added, and in tonight’s update, I’ll provide you with more info on the market and the overall impact today’s move had on my portfolio. But I am happy with where I am currently sitting, especially when you consider that the market is trading in the red for the year. 

Indicators

  • Volatility Index (VIX) – Right now it is up 50% and the highest reading since December 28, 2018. Yes, a 50% move is a big freakin’ deal and shouldn’t be taken lightly. Also, if you want to sleep at night, stay away from any and all VIX products. 
  • T2108 (% of stocks trading above their 40-day moving average): Down to 35%. Nowhere near the Lows from June of last year, but still the lowest reading since the October sell-off. Currently down 28% on the day. 
  • Moving averages (SPX): Gapped and currently trading below the 20-day and 50-day moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy, Discretionary, and Technology are the big losers on the day, while Utilities, Real Estate and Telecom shows the most relative strength. This is the kind of lineup you would expect when the market is behaving this bearishly. 
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My Market Sentiment

swing trading strategy outlook 598