My Swing Trading Approach

If the market is interested is reversing the selling of the past two days and rallying, I will be interested in adding 1-2 new positions to the portfolio. Beyond that, I will continue raising my stops on existing positions. 

Indicators

  • VIX – Not a major rally that you would expect from a 31 point sell-off. Rose 6.9% to 14.79. 
  • T2108 (% of stocks trading below their 40-day moving average): Another hard sell-off of 8%, taking it down to 56%. 
  • Moving averages (SPX): 5-day and 10-day moving averages were crushed yesterday. May test  the 20-day moving average going forward. 
  • RELATED: Patterns to Profits: Free Training Course

Industries to Watch Today

No sector was spared yesterday. Energy is the most damaged and could be experiencing a reversal here, while Consumer Cyclical chart remains the best, and most intact. 
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My Market Sentiment

Yesterday’s sell-off, was the worst sell-off seen since May of last year. The rising channel that price was trading in, was broken. Today will be key for the markets as yesterday’s lows will need to hold, otherwise, a retest of intermediate trend-lines will be tested below 2800. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 5 long positions

Recent Stock Trades – See My Past Performance Here. 

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