My Swing Trading Approach

I’ve switched sides here and now find myself bearish on this market with one short, but profitable, position. I may add an additional short position to the portfolio depending on the overall price action of this market. Not looking to get long on anything, unless there is a very sharp and decisive bounce that the market provides us with. 

Indicators

  • VIX – Popped 12.5% yesterday to 17.91. Highest close since April 24th, but far from being overstretched at this juncture. 
  • T2108 (% of stocks trading below their 40-day moving average): Only 48% of stocks now trading above their 40-day average, and this indicator is certainly breaking down.
  • Moving averages (SPX): Broke the 50-day moving average, and now all that exists is another date with the 200-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy was again, the only sector that held up. Everything else caved in with Utilities showing relative strength. The money is flowing out of Technology and Discretionary. Financials traded lower for a record, 13th straight day. Absolutely due for a bounce. 

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My Market Sentiment

I’ve turned bearish on this market in the short term. Will it be like anything we saw in late January or early February? Who knows, but another test with the 200-day moving average seems likely, and the bulls have little support between current price on SPX and where the 200 currently lies. 

S&P 500 Technical Analysis

swing trading strategy report 232

Current Stock Trading Portfolio Balance

  • 1 Short Position

Recent Stock Trades – See My Past Performance Here. 

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