My Swing Trading Strategy
I added one additional trade to the portfolio, but the market still showing a low volume readout following Monday’s rally. I may add one additional trade to the portfolio today as well, depending on the strength of the market.
Indicators
- Volatility Index (VIX) – Spent all of yesterday trending higher in small increments, with a final gain of 2.8%. Still compressed, but a rally back to the March highs isn’t out of the question.
- T2108 (% of stocks trading above their 40-day moving average): This chart is diverging once again from current price action on SPX. Same thing happened last September with a continuous series of lower-highs despite SPX making higher-highs.
- Moving averages (SPX): Trading above all the major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Technology remains Mr. Dependable of late, as it is has been at or near the strongest sectors on a near daily basis. Telecom sporting a bull flag pattern breakout, while the Financials are possibly forming the right shoulder of a head and shoulders pattern. Heathcare continues to coil at its highs.
My Market Sentiment
Not as bad as Tuesday’s holiday-like volume reading, but still low again for SPX and the weight of Facebook’s (FB) quick sell-off took the entire SPX down with it. Up five straight days, the potential some profit taking looms in the days ahead. So be prepared should that happen. Right now, the channel shown below continues to dominate the current market behavior.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 30% Long.
