My Swing Trading Approach

Coming in lighter than I was before with only 3 positions in the portfolio, after closing out Micron (MU) for a +7.8% profit and FedEx (FDX) for a +1.4% profit. I’ll be looking to add 1-2 new long positions today to the portfolio, assuming that market conditions will keep pushing price higher. 

Indicators

  • Volatility Index (VIX) – A 4.7% decline has taken the index down to 12.25 and engulfing the previous day’s candle body. Likely that we see another push into the 10-11’s. 
  • T2108 (% of stocks trading above their 40-day moving average): Breadth was fairly flat yesterday and that was reflected in the T2108. The bulls should want to see this indicator move from 62%, where it currently is, to over July’s highs of 69%. 
  • Moving averages (SPX): Trading above all the major moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy led the way, and has bounced for the fifth straight day. Healthcare remains the strongest sector of late, continuing to make new highs over the last five days. Technology nearing a breakout of the triangle. Materials looks like  a dead cat bounce. Discretionary is confirming a double bottom. For a complete analysis on the sectors, click here.  
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My Market Sentiment

Market remains bullish, and yesterday’s sell-off (if you call it that) represented a healthy dose of consolidation and digesting of recent gains. I expect a push to new all-time highs very, very soon. 

S&P 500 Technical Analysis

swing trading strategy report 271

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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