My Swing Trading Approach
Plenty of long positions already in the portfolio. I will look to add 1-2 new long positions today on improved bullishness over last week. Careful not to add additional shares of anything if the market is not willing to commit to a direction.
Indicators
- Volatility Index (VIX) – Noncommittal. VIX hasn’t had a direction over the last two weeks. Currently at 12.86.
- T2108 (% of stocks trading above their 40-day moving average): Starting to lack a trend.Sideways over the last eight trading sessions.
- Moving averages (SPX): Rejected at the 5-day MA, but holding the 10-day MA still. Both likely to be tested yet again today.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Financials led the way, and its weekly chart shows a break of the downtrend off of the January highs. Staples continues to consolidate but on the verge of breaking out in a dramatic way. Energy hard to make sense of. Industrials still range-bound but solid over the last three weeks. Healthcare in a bull flag. Technology consolidating at the highs and remains very bullish.
My Market Sentiment
Second straight day in the red for the market, making last week’s move that saw the market, only improve by 0.52 points. Hardly impressive. Low volume in a tight trading range, the tightest so far in 2018, continues to dominate the market. A break of last week’s highs will increase the market’s bullishness going forward, but needs to hold the 2801 level going forward, at least.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
