My Swing Trading Strategy

Two new long positions were added yesterday, and while I am open to adding more, the market will have to come off of its lows. I have been hesitant to add pure technology plays of late, especially those with connections with China, as they are in the crosshairs of Wall Street right now.

Indicators

  • Volatility Index (VIX) – Sold off for the sixth time in the last nine trading sessions. Volatility continues to wane over the last couple of weeks, and intraday gains can’t be sustained.  
  • T2108 (% of stocks trading above their 40-day moving average): A 14% pop puts the indicator back up to 43%. Consolidation over the last couple of weeks.
  • Moving averages (SPX): Unable to make a move to test the 50-day moving average but did make a solid break of the 5 day and 10-day moving average. In a bullish gesture, the 5-day crossed back above the 10-day MA for the first time since May 3rd. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

A much needed bounce play in Materials yesterday. Technology led the way for the overall market and while all sectors traded higher, the Defensive stocks lagged big time. Energy is nearing a breakout of its base as well.  
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My Market Sentiment

Pre-market weakness, but the job of the bulls will have to be to hold on to the Monday’s lows in order to not violate it and keep the trend moving lower towards the May lows once again. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 30% Long

Recent Stock Trades – See My Past Performance Here. 

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