My Swing Trading Strategy

I added one additional swing-trade to the portfolio yesterday, while keeping my remaining two that I started the day with. I am open to adding one additional position today, but may stay put on the sidelines until we can see price action close above overhead resistance on SPX. Something that it has tried to do all week and failed at.  

Indicators

  • Volatility Index (VIX) – Small bounce in it yesterday, and still sitting at 13.50. Look for more of a push today into the 12’s if the early morning strength holds up. 
  • T2108 (% of stocks trading above their 40-day moving average): Dropped 5% yesterday, and still has a look of wanting to roll over here and back into the 50’s. 
  • Moving averages (SPX): Currently trading above all major moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Telecom continues to show a lot of strength over the past five trading sessions, but in my opinion a difficult sector still for trading. Financials was one of four sectors that finished in positive territory yesterday, but the bounce there doesn’t look impressive, and wouldn’t let yourself get dragged into it. I’m still not crazy about Energy, and yesterday’s shooting star candle confirms that. Utilities remain the strongest sector of late.  
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My Market Sentiment

Resistance, resistance, resistance. That is what matters right now, and until the bulls can push through that level shown below, there is little reason to by heavily long. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 30% Long.

Recent Stock Trades – See My Past Performance Here. 

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