My Swing Trading Approach
Another position was added yesterday, with a solid spread across the market’s sectors (i.e. I’m not trading anything that’s in the financials or materials). Again, I will continue tightening the stop-loss on my existing positions, but adding anything new to the portfolio at this point, will require a lot of strength and conviction from the market. Otherwise, I will be focused solely on my existing trades.
Indicators
- Volatility Index (VIX) – Dropped for a fourth straight day, to the tune of 5.9%. Setting up for a move down to the 11.90’s.
- T2108 (% of stocks trading above their 40-day moving average): Barely a move yesterday, really no move at all. This is troubling as breadth is very weak over the last four trading sessions, despite SPX rallying during that time.
- Moving averages (SPX): Broke back above the 10-day MA and now trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Technology was the market leader yesterday, and looks to retest its all-time highs here very soon. Telecom has been the most bullish of all the sectors this week – very strong and breaking out of its base. Healthcare broke out of its bull flag pattern. Materials, Financials and Energy does not look inspiring at all. 
My Market Sentiment
The breadth continues to be a theme for the market this week, and has often led to eventual reversals, particularly this year. There is a bearish wedge in place, and price will need to break out of the upside here very soon, to negate the pattern.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
