My Swing Trading Approach
Following a massive stock market rally yesterday, across the board, I have a few trades in mind for today, but don’t see myself adding but one new additional trade, and that is assuming the market can hold yesterday’s gains, which looks slightly problematic at this point.
Thursday’s Swing-Trade Ideas:
Take a look at three trading ideas to prep you for the trading session.
Get all of my trades that I make real-time by jumping in the Swing-Trading Splash Zone and start making some profits for yourself!
Long Goldman Sachs Group (GS)
Long Nuance Communications (NUAN)
RELATED: My Patterns to Profits Training Course
Short Charles Schwab (SCHW)
Indicators
- Volatility Index (VIX) – VIX broke the key 10/17 lows, which leaves little support until price reaches the 12’s. Currently trading at 16.36.
- T2108 (% of stocks trading above their 40-day moving average): The strength in this indicator has been amazing, as it is now sporting a reading of 40.5%, following another 30% rally yesterday. May find overhead resistance at 43%.
- Moving averages (SPX): Broke back above the 200-day moving average in dramatic fashion, and poised for a test of the 50-day MA in the near future.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Healthcare, Technology and Discretionary were the top three sectors yesterday which is what you want to see in a market bounce. This is a good sign that investors are looking to gobble up cheap shares as fast as they can. Utilities and Staples were the laggards of the day – another positive. 
My Market Sentiment
SPX is back in overbought territory after rallying over 200 points over the past two weeks. An impressive rally. You still want to be cautious of potential downside here, or at the very least a pullback from the recent gains that have been made. Looking for a higher-high in the near future while currently testing the 10/17 highs.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 3 Long Position
