My Swing Trading Approach
I booked profits in AMZN yesterday for a +2.2% profit, while adding one additional long setup. Still a light portfolio, and will continue to do the same into today.
Indicators
- Volatility Index (VIX) – VIX pulling back further seems likely, as the market is still engaged in a market bounce. I suspect a move to the 14-15 area is likely.
- T2108 (% of stocks trading above their 40-day moving average): Poor breadth yesterday despite a flat market. Reflected in the T2108 indicator with an 8% decline to 19%.
- Moving averages (SPX): Testing the 10-day moving average, while the 5-day MA is attempting to trend higher.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Eight of the eleven sectors were down yesterday, Financials the only one showing any respectable amount in gains. Staples hitting resistance overhead, and I suspect it will start to trend lower in the coming days. Bounce in Healthcare looks like it could easily continue going forward, as Utilities remain near its highs and healthy. Technology and Discretionary still showing a lot of upside still. 
My Market Sentiment
Consolidation yesterday, and a tendency to buy the intraday weakness, keeps the market near the bounce highs. Volume still coming in strong on the market. While we could retest last week’s lows, it is more likely that there is more short squeezing in store for this market.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 2 Long Position.
