My Swing Trading Approach
Follow through hasn’t been the market’s strong suit of late. I may add another position today, but I will not be extremely aggressive in doing so. I have a great set of long positions, will only add more if this market shows that it wants to build upon yesterday’s breakout.
Indicators
- VIX – Melting away, in a snowflake-like manner. Giving up all its gains from a week ago. Looking at a sub 12 move in the days ahead.
- T2108 (% of stocks trading below their 40-day moving average): If energy and finance can ever pull it together, this indicator will break right through 70%. For now, it remains range-bound at 65%
- Moving averages (SPX): Trading above all the major moving averages.
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Industries to Watch Today
Energy was really discouraging yesterday – There was a huge opportunity for a sizable bounce in that sector, and instead, it was one of two sectors that finished well in the red. Don’t add anything else to this sector, until it can prove otherwise. Huge move in Discretionary and flirting with a test of its all-time highs. I’m still a huge fan of this sector. Defensive sector is about as stale as can be. Not playing anything from it or Utilities or Communication Services. Technology is at all time highs – your money needs to be here. Industrials could be a player but I need to see more first. 
My Market Sentiment
I was glad to see that the bulls didn’t blow it yesterday by selling off and staying stuck in a sideways trading pattern. Three weeks is enough for me, and now all eyes are on whether the bulls can now take out the 3/13 highs. Also, the breakout point for the bulls now becomes support for this market going forward.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
