My Swing Trading Approach

The bulls continue to push this market higher, and starting to add gaps to the daily chart, which ultimately has to get filled. While I am inclined to continue adding new positions to the portfolio, I’ll also look to book profits where needed, like yesterday in SalesForce (CRM) for a +2.6% profit. 

Indicators

• Volatility Index (VIX) – Despite a strong rally yesterday in the indices, the VIX managed to finish 1.4% higher as well. 
• T2108 (% of stocks trading above their 40-day moving average): Breadth was suspicious yesterday, and something that should be watched closely today. Current sitting at 62% following yesterday’s gravestone doji. 
• Moving averages (SPX): Trading above all the major moving averages.
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Materials led the way yet again, but I am not enthused by its chart, and remain distant from trading it. Technology getting stretched to the upside following eight straight days of trading higher. Expect consolidation at the least at this point. Watch the banks though, they are pushing through some major resistance and could see themselves make a big push higher here. Industrials continues their climb as well, and should be traded. Discretionary breaking out of a bull flag pattern. 

My Market Sentiment

Watch the price action here, following yesterday’s gap into resistance. While we may push through it, there’s a good chance we may still see some consolidation or a retrace in price as traders look to book profit. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.