My Swing Trading Approach

I tried to take NFLX and AMZN overnight but the intraday sell-off forced me to take profits of +1.3% and +0.2% respectively. Today I am looking to add 1-2 positions ahead of the FOMC Statement. 

Indicators

• Volatility Index (VIX) – VIX manages to continue its push higher, with another 4.3% rally to 25.58, which is the highest closing level since February 12th of this year. Still there is a lot of resistance overhead from intraday action over the last two months, that it has yet to break through. 
• T2108 (% of stocks trading above their 40-day moving average): No real bounce in T2108 yesterday, and still hovering in the extremes, with a current reading of 11%.
• Moving averages (SPX): Trading below all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology showed a lot of strength yesterday as it managed to pace the market higher. However, most other sectors either traded lower or notably lagged. Financials still cannot maintain a bounce and is a huge concern for this market going forward. Energy still in a freefall, with little to no support underneath. Stay away. Most concerning is Healthcare which continues to see heavy selling along with Utilities. 

My Market Sentiment

The Fed is in a position today where it can’t stop the expected rate hike, because then Powell will look like a Trump pawn. However, I suspect that he will feel the pressure to get very dovish in his FOMC comments to alleviate the market selling pressures and provide a solid year-end bounce for the market as a whole and lighten up on the rate increases next year as well. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 100% Cash

Recent Stock Trades – See My Past Performance Here.