My Swing Trading Approach

 This is a tough market, too oversold to short, but not enouch conviction for a sustained bounce. In fact, there hasn’t been a single day of back-to-back gains since September 20th. That’s incredible really. Despite the huge, negative earnings reaction out of AMZN yesterday, and the market’s weakness today, either it bounces back, or this market will get far more bearish. The latter scenario seems difficult to me without some kind of sustained bounce first. But crazier things have happened before. 

Indicators

  • Volatility Index (VIX) – Looking at an open of over 26, but still yet to break the intraday highs from October 11th, so a slight bullish divergence there, but nothing to hang your hat on. 
  • T2108 (% of stocks trading above their 40-day moving average): I suspect that the opening bell will print a reading in the single digits for the second time this month. Almost always signifies an intraday bounce. 
  • Moving averages (SPX): Unable to break through the 5-day moving average yesterday. 10-day MA interestingly enough is trying to turn higher, but will need help today in order to keep that alive. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

I did a write up of all the sectors yesterday with detailed analysis for each – highly suggest reading it here. 
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My Market Sentiment

SPX at extreme oversold levels, and while it can certainly get more extreme, joining the bear party at this juncture seems a bit foolish. I am still looking for an upside bounce in the coming days, beyond what we saw yesterday. 

S&P 500 Technical Analysis

swing trading strategy report 316

Current Stock Trading Portfolio Balance

  • 3 Long Positions.

Recent Stock Trades – See My Past Performance Here. 

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