My Swing Trading Approach
Tighten my stops, and sit tight. The key here isn’t to fight the market but to wait for favorable market conditions for trading.
Indicators
- VIX – Rose to 13.84 – or 25%. The highest closing since 8/18/17 and looks to push higher yet again today.
- T2108 (% of stocks trading below their 40-day moving average): The lack of breadth in this market was clearly seen in this indicator with there being a slight negative return on Friday.
- Moving averages (SPX): Tested the 5-day moving average yesterday, but held.
- RELATED: Patterns to Profits: Free Training Course
Industries to Watch Today
Every sector traded lower yesterday. Sectors like the Financials and Energy could see some major damage to their charts overall. Overall, I expect that if today’s selling holds the charts will show some technical damage.
My Market Sentiment
Price action is looking at a major gap lower that will break through the 5-day moving average, and test the 10-day moving average for the first time this year. Gaps in either direction have had a hard time remaining unfilled, but the bulls will have their work cut out for them on this one.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 7 long positions
Welcome to Swing Trading the Stock Market Podcast!
I want you to become a better trader, and you know what? You absolutely can!
Commit these three rules to memory and to your trading:
#1: Manage the RISK ALWAYS!
#2: Keep the Losses Small
#3: Do #1 & #2 and the profits will take care of themselves.
That’s right, successful swing-trading is about managing the risk, and with Swing Trading the Stock Market podcast, I encourage you to email me (ryan@shareplanner.com) your questions, and there’s a good chance I’ll make a future podcast out of your stock market related question.
Emotional trading will destroy one’s portfolio. Aiming to hit home runs with every trade is a sure sign that the trader is overly emotional and only cares about fast money. In this podcast episode Ryan explains how chasing after stocks like MicroStrategy (MSTR) without a plan for managing the risk can ultimately ruin a trader’s attempt at being a successful swing-trader.
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*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.