My Swing Trading Approach

I closed out my short position yesterday in the early stages of the bounce, for a nice profit, now flipped and have taken on a long position to ride the bounce higher. Will add 1-2 more trades to the portfolio today if the market can follow through to the upside.

Indicators

  • VIX – Gave way yesterday to the market rally, as it declined 6% to 16.85. Still elevated compared to the last few months. May see additional weakness today. 
  • T2108 (% of stocks trading above their 40-day moving average): Finished off its lows of the day, but surprisingly lower overall, on the day. Down 2% to 47%. Good chance we see a strong bounce out of it today. 
  • Moving averages (SPX): Finished right at the 50-day moving average. Should see a gap above it and the 5-day moving average today.  
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology turning it around yesterday, by leading the market higher. Despite recent bullishness of late, Energy struggled to find any real meaning. May still have some upside left, as it is still trying to emerge out of a short-term base, with heavy volume. I expect to see some buying interest in the Discretionary stocks today as well. 

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My Market Sentiment

Follow through on the indices today will be key, otherwise, yesterday’s bounce will be considered a dead cat bounce. End of quarter today, so expect some theatrics heading into the close. 

S&P 500 Technical Analysis

swing trading strategy report 233

Current Stock Trading Portfolio Balance

  • 1 Long Position

Recent Stock Trades – See My Past Performance Here. 

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