My Swing Trading Approach

I added one long position yesterday that’s off to a good start, once the market showed a willingness to bounce and sustain the bounce off of the lows of the day. I will consider adding another long position today should the momentum sustain itself following the jobs report. 

Indicators

  • Volatility Index (VIX) – A huge move above 23.81 to create a higher-high, the only problem, was that the momentum could not be sustained and nearly all of the gains were lost by the close at 21.19. 
  • T2108 (% of stocks trading above their 40-day moving average): Saw nearly half of its value wiped out yesterday, but bounced off of those lows at 18, to rally back to 31.49 with a 0.5% rally into the green. A remarkable turnaround. 
  • Moving averages (SPX): Trading below all major moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Massive rally in Real Estate, with a good chance it retests its all-time highs again. Utilities continues to impress with a close near its all-time highs. The biggest story is Technology and how well it has held up this week despite market weakness. It is in a good position to finish positive on the week, and establish a higher-low and higher-high in the short-term. 
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My Market Sentiment

The market went from doom and gloom yesterday to a near-miraculous 80 point reversal on SPX. Yesterday had all the hallmarks of capitulation: eye-opening losses early on, heavy selling, breadth 19:1 on SPX in favor of the bears, hard bounce in the afternoon, when all seemed lost. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 1 Long position. 

Recent Stock Trades – See My Past Performance Here. 

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