My Swing Trading Approach

I have been a little more conservative with my approach here. I have plenty of swing-trades in the portfolio – all with profits, but am somewhat hesitant to add more to the portfolio with as overbought as this market currently is. Not that I won’t going forward, but it needs to be a really solid, low risk/high-reward opportunity. I don’t want to risk a chunk of my recent profits on any new trades, so it needs to be a minimal risk play. 

Indicators

• VIX – Down five of the six past trading sessions. Due for a bounce as it has reached its lowest reading since January 26th, and back below 12. 
• T2108 (% of stocks trading below their 40-day moving average): Showing signs of life following yesterday’s market rally. Popped 4% to get back to 68%. Not as high as I would like to see, but still a solid reading. 
• Moving averages (SPX): Trading above all the major moving averages. 
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Industries to Watch Today

Financials showed up yesterday, but the sector still looks like a mess, and don’t have any intentions of playing it yet. Materials making a huge move and looks like it wants to test its all-time highs again. Energy still struggling to find its footing the last two weeks. Technology lagged the market considerably, and if that continues into today, that could be a red flag for the current rally. 

My Market Sentiment

Yesterday was a pleasant surprise with decent volume and a significant move higher to confirm the bullish breakout from Monday. A test of the March highs seem all but certain at this point. The market is overbought here, but that can be sustained for days at a time before seeing the profit taking. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 6 Long Positions

Recent Stock Trades – See My Past Performance Here.