My Swing Trading Strategy
The market provided very little incentive yesterday to add any new trades to the portfolio. I will consider adding another position to the portfolio if the market can hold up its pre-market strength. I also plan to increase my stops in the early going.
Indicators
- Volatility Index (VIX) – Rallied strong earlier on yesterday, but gave up 75% of its daily gains to close at 12.32 and sets up for another move below 12.
- T2108 (% of stocks trading above their 40-day moving average): A 3% decline yesterday, but the inverse head and shoulders pattern is still intact and poised for a break higher through 68%.
- Moving averages (SPX): Currently trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Staples, Utilities and Telecom were the three market leaders yesterday and a sign the market was wanting exposure in sectors that were less aggressive. Healthcare looks prime for a triple-top rollover. Technology still sits at its all-time highs, while Discretionary remains at its rally highs – both solid sectors.
My Market Sentiment
It is a slow churn right now in the market, and the rallies happen overnight. So it is difficult to get much action during the hours the market is open. I expect the volume to drop off as the market wears on as well.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 50% Long.
