My Swing Trading Strategy
I didn’t add any new positions on Friday, and I’m coming into the new trading session today 100% cash. Reason why I didn’t by the ramp, because it wasn’t worth it to me to take on the risk over the weekend, for a simple hour of bullishness ahead of the close. I will look to play the bounce today, if it can hold, otherwise, I will fade the strength if it can’t hold.
Indicators
- Volatility Index (VIX) – Tested the 50-day moving average and was quickly rejected, and finished in the red for the first time in five trading sessions. Bearish engulfing candle pattern too.
- T2108 (% of stocks trading above their 40-day moving average): Another 5% drop, and its ninth drop in the last ten trading sessions. Showing signs that the market may be ready for a quick bounce here .
- Moving averages (SPX): Looks like it will test the 200-day moving average today at the open. Still a good chance we see a test of the 50-day MA in the coming weeks.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy has been a disaster of late – a lot of double tops in individual names. I’d stay away from Industrials today, as Boeing (BA) will no doubt way heavy on that sector today with its second plane crash. A lot of names are setting up with bull flags in the Utility sector. And if you are looking to play the bounce today, focus in on Discretionary and Technology.
My Market Sentiment
Impressive rallying of the troops into the close on Friday, to avoid a meltdowon for the week as a whole. Nonetheless, plenty of reason to be skeptical of this market coming into the week, but it may take a bounce first before we see the selling resume. Stay cautious with your trades and tight with your stops.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 100% Cash.

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It's 2025 and we have for ourselves a stock market correction. I get that some people are calling it a stock market crash already, but that is certainly pre-mature and short-sighted. Let's call it for what it is right now, and that is a stock market correction. In this podcast episode, Ryan discusses how important it is to be risk managers in our trading and how we can weather the storms of the market and even profit from a stock market correction. This is an incredibly important podcast episode that you won't want to miss!
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