My Swing Trading Approach
I may look to add another 1-2 long positions to the market today, but the parabolic nature provides a great deal of concern for me going forward, and how long this kind of momentum can be sustained.
Indicators
- VIX – Up six out of the last seven days – surprising, considering the bullishness of the market. A divergence clearly worth paying attention to.
- T2108 (% of stocks trading below their 40-day moving average): Just a 1.4% move higher, despite a very bullish move for the market. Breadth is not great here.
- Moving averages (SPX): Still holding on to the 5-day moving average and all the other MA’s.
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Industries to Watch Today
Utilities and Real Estate continue to falter, with the former more than overdue for a bounce. Consumer Defensive plodding along, not overbought. Energy, Cylical, Financials, Industirals, Basic Materials, Healthcare and to a lesser extent, Technology are all parabolic and rising in an unsustainable manner.
My Market Sentiment
The gap being seen this morning, could result in an exhaustion gap leading to some sideways price action over the coming weeks. Stay tuned.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 long positions
Recent Stock Trade Notables:
- Square (SQ): Long at 40.41, sold at 41.16 for a 1.9% profit.
- Fifth Third Bancorp (FITB): Long at 30.92, sold at 31.80 for a 2.9% profit.
- US Steel (X): Long at 35.38, sold at 36.90 for a 4.3% profit.
