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. 

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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

swing trading strategy report 119

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. 

See my entire swing-trading past performance here. 

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