My Swing Trading Strategy
Right now, I am open to adding another long position if the market can rally off the pre-market lows, which has been the norm of late. However, the potential for a pullback of some kind is greatly increasing and I don’t want boatload of new positions when that happens. Keep raising those stops!
Indicators
- Volatility Index (VIX) – Small pop early on, but ultimately gave up most of its gains. This indicator remains contained and unable to sustain any meaningful rally.
- T2108 (% of stocks trading above their 40-day moving average): Breadth was poor yesterday, despite the market trading slightly higher, with the indicator dropping 2% but down to 66%.
- Moving averages (SPX): Trading above all the major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy and Materials continue to be the go to sectors for this market. Technology has been consistent but the gains not nearly the same. Financials have been strong as well, but not worth playing ahead of their earnings that start this week. Industrials have held up well despite the weakness coming from Boeing (BA).
My Market Sentiment
SPX up eight straight days – at some point, it seems likely we are going to see a pullback of some kind, or at least some sideways consolidation. Any pullback is okay, as long as price doesn’t violate the two support levels shown in the chart below.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 30% Long.
