My Swing Trading Strategy
Lowest volume day of the year yesterday and even less than what we saw on the half day of trading, the day after Thanksgiving. In fact, the market finished complete flat yesterday. In essence – that’s not something anyone can do much with. I’ll be looking to add 1-2 new positions today if the volume comes in better today.
Indicators
- Volatility Index (VIX) – Barely a move in VIX, but nonetheless, the indicator continues to drop over the last seven trading sessions, declining in six of them. There is resistance at the 18 area, but also the potential for a bounce at its current price of 13.36.
- T2108 (% of stocks trading above their 40-day moving average): Breadth wasn’t good at all with the overall market yesterday as the T2108 dropped 4.5% overall. Still in a declining trend-line, but a strong rally today could change that and reverse the trend.
- Moving averages (SPX): Trading above all the major moving averages.
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Sectors to Watch Today
Real Estate continues to surge higher and Technology set to hit new all-time highs today. Healthcare strong over the last four sessions, but overall has been consolidating for about a solid month. Materials ready to break out of its nearly two month trading range. Financials still has lower-lows and lower-highs in place.
My Market Sentiment
SPX went back to its low volume ways yesterday, but on a victorious note, held all of Monday’s gains. Last time we saw the market rally like it did on Monday, it sold off 54 points the next day. So yesterday was a nice change for the bulls. The bulls are still setting up with a potential run to the all-time highs in the coming weeks.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 20% Long.
