My Swing Trading Approach
I am coming back from a two day-hiatus from trading – one of my firsts in a very long time. I’m coming in 100% cash, and will look to deploy some of it, should the market provide some direction. I am careful here about getting overly zealous to the long side when the market has rallied into some key resistance areas of late.
Monday’s Swing-Trade Ideas:
Take a look at three trading ideas to prep you for the trading session.
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Long Splunk (SPLK)
Long American Airlines (AAL)
RELATED: My Patterns to Profits Training Course
Long Alphabet (GOOGL)
Indicators
- Volatility Index (VIX) – VIX back below 20, and will need to hold the lows from 10/16 at 17. Double top close to confirming should 17 break.
- T2108 (% of stocks trading above their 40-day moving average): A lot of strength last week, with a rebound back to 22%. Should the rally continue, expect a bigger move back into the 40’s.
- Moving averages (SPX): Held the 5 and 10-day moving averages on Friday after being tested simultaneously. 20-day moving average acting as resistance here, with 200-day right overhead.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Basic Materials with an incredible four day bounce, but nearing some resistance from back in August/September. Industrials looks like a lower-high in place. Telecom looking at a break back over the 200-day MA, and a new leg higher. Technology struggling with the Apple earnings, and has yet to establish a lower-high. 
My Market Sentiment
I think the potential for a dead cat bounce dying here looms large as the market has managed to relieve the selling pressures from October, and could certainly send price back to the October lows, and possibly the February lows eventually.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 100% Cash.
