My Swing Trading Approach

Playing it cautious yesterday – added one additional play on the dip yesterday, but I am sitting on 80% cash, and if the market cannot rebound today, I will look to keep it that way today. Short plays at this juncture looks like a trap with the market’s low volume and suppressed volatility. 

Indicators

  • VIX – VIX bounce is not a surprise – It had been suppressed for quite some time. A substantial follow through today, would be a big victory for the market bears. 
  • T2108 (% of stocks trading below their 40-day moving average): A 6% decline yesterday, puts the T2108 back under 60%. The rising trend-line off of the February lows, could come in play in the coming days. 
  • Moving averages (SPX): 5-day moving average broken yesterday, the 10-day MA will be in play today. 
  • RELATED: Patterns to Profits: Free Training Course

Industries to Watch Today

Energy still holding its own, and the only sector that traded higher yesterday. Financials are much more bullish of late with rising 10 year yield. The bullish sectors of late: Discretionary, Technology, Industrials, Healthcare and Materials, all need to bounce here, or it will simply fall back into the chop that we have seen for much of the past three months. 
patterns to profits email

My Market Sentiment

Some key support levels being tested today. Futures are trading slightly lower in the pre-market. Needs to hold support and bounce if this market is going to sustain the current rally momentum. 

S&P 500 Technical Analysis

swing trading strategy report 202

Current Stock Trading Portfolio Balance

  • 2 Long Positions

Recent Stock Trades – See My Past Performance Here. 

You Might Like

  • Short-term bounce

    The Anatomy of a Short-Term Bounce

  • January Barometer: As January goes, so goes the year.

    January Barometer: As January Goes

  • Swing Trading the Holidays