My Swing Trading Approach

Booked profits in Wayfair (W) for +6.4% profit. I added another long swing-trade to the portfolio on Friday, and will look to add more today as well. 

Indicators

  • Volatility Index (VIX) – Bull flag pattern that was forming in the VIX has pretty much been nullified, but could still see an inverse head and shoulders pattern play out. 
  • T2108 (% of stocks trading above their 40-day moving average): A 3.4% pop took the indicator back over 60%, but still, the indicator is lagging overall market price action.  
  • Moving averages (SPX): Trading above all the major moving averages after bouncing off of the 5-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Materials were the big winner on Friday, but overall the chart remains bearish and I would not trust it. Money is flowing hard back into Technology lately, and that should be a key focus for your trading. Energy is still very choppy, and I would avoid at all costs. Industrials chart is poised to break higher to new all-time highs with a bull flag on the daily. Healthcare has been unstoppable, and the market’s strongest sector right now. 
patterns to profits email

My Market Sentiment

New all-time closing highs, are obviously going to be bullish, and reason to get short on this market at this point is a foolish decision. Sure price action can fall apart here, but there needs to be signs of that on the daily chart, and right now there is none. It is better for that to develop, rather than trying to blindly anticipate the move. 

S&P 500 Technical Analysis

swing trading strategy report 273

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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