My Swing Trading Strategy

I expected to hold on to SPXU yesterday longer than I did, nonetheless, I was forced to quickly act and close out the position for a +1.1% profit. I added another long position yesterday, and will consider one more today if the market can sustain the early market gains. 

Indicators

  • Volatility Index (VIX) – A drop of 9% sent the VIX down to 16.44 and likely sets up for a break of the lows from last Friday. 
  • T2108 (% of stocks trading above their 40-day moving average): A small bounce of 6.7%, not as much as you’d expect, but still a positive move off of the lows of the day. Currently sitting at 43%. 
  • Moving averages (SPX): Broke back above the 5-day moving average (barely), and could see a test of the 10-day MA as well today. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology was the market leader yesterday and was so by a long shot. Money flowed out of Financials and Utilities and back into Tech and Discretionary. Staples now trying to break out of the bull flag it has been in for much of this month. Real Estate holding up well and ready to break out to new all-time highs. 
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My Market Sentiment

A legitimate bounce attempt has unfolded in the market. A test of the 50-day moving average is likely today. Any bounce should be viewed with suspicion as it is quite simple for the market to reverse direction on a simple market headline in regards to the tariff war between the United States and China. 

S&P 500 Technical Analysis

swing trading strategy report 440

Current Stock Trading Portfolio Balance

  • 30% Long

Recent Stock Trades – See My Past Performance Here. 

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