My Swing Trading Approach

I am taking a wait and see approach following Tuesday’s head fake. The market needs to build some credibility with me today that it can sustain its gains, before I go adding something new again. Tuesday’s price action didn’t make for ideal trading conditions, and instead of committing more capital, I will look to remain on the sidelines today.

Indicators

  • VIX – Recovered from Monday’s losses, with a 3.5% increase. Still within a 7-day range and could still make a move for 20 here. 
  • T2108 (% of stocks trading above their 40-day moving average): 7% bounce to 52%. Still facing some resistance at the 56% level. 
  • Moving averages (SPX): Opened above the 10-day moving average, but by the end of the day, dropped back below the 50-day and 5-day MA as well. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology really got beat up on Tuesday. Energy and Materials re-emerged as the market leaders after getting ripped apart in the day prior. Discretionary has been floating without real conviction of late. Financials could be staging another move lower here.  

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My Market Sentiment

Tuesday’s afternoon sell-off really cramped the market going forward, so that today would be quite a wild card as to what it would do. Futures are pointing higher, but morning gaps higher have had a tendency to get quickly filled and thereby casting some skepticism on whether the market can hold it together today. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 4 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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