My Swing Trading Strategy
Another gap down this morning, which obviously doesn’t bode well for a market that has yet to finish in the green this week, and on track to have its work week so far of 2019. I played TQQQ for a day-trade yesterday and a +2.3% profit. On the flip side I was stopped out of a couple other existing trades as well, that had been held overnight. However, on the whole, I’m holding up well to the market sell-off. I don’t want to get short at this juncture, because we are one positive headline away from shooting this market up 40-60 points overnight.
Indicators
- Volatility Index (VIX) – Despite the market finishing lower yesterday, the VIX gave up all of its intraday gains, that had gone over 23, and closed 1.6% lower at 19.10. That could be a short-term top for the indicator as we we have seen similar behaviors before, throughout 2019.
- T2108 (% of stocks trading above their 40-day moving average): Finished 2.6% lower, but again, managed to finish back above the March lows.
- Moving averages (SPX): This 50-day MA keeps getting tapped, but each time it has held it into the close, even yesterday where it dropped decisively below it, intraday.
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Sectors to Watch Today
No major sector sell-offs yesterday, with the worst coming from Materials that was down 0.7%. Telcom saved itself from a topping pattern with yesterday’s bounce, while Utilities sits on the brink of a major rollover. Industrials still looks solid as it is holding the 50-day moving average and sets up for a higher low here. Same can be said about Financials, Discretionary and Technology.
My Market Sentiment
SPX has been down six of the last seven trading sessions, and every day this week. And guess what? It is down yet again this morning. I think there is a good chance we bounce into the weekend and I think there’s also a good chance that Tech leads the way higher today. All speculation, but remember this is a headline driven market, so the big question becomes whether the US and China can resolve their differences. I think we will likely see a solution in the near-term.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 20% Long
