My Swing Trading Strategy
I added one new trade to the portfolio on Friday, while closing out a losing position in the early going. All four positions that I have are poised to benefit from the pre-market strength and will look to add a new position today.
Indicators
- Volatility Index (VIX) – A 4.7% decline on the VIX coming all in the final 30 minutes of trading, and failing to break above the declining trend-line for a fourth straight trading session.
- T2108 (% of stocks trading above their 40-day moving average): A major 15% rally on Friday took the indicator back up to 60% for the first time since 5/6 and above the June highs as well, breaking firmly out of its bull flag pattern.
- Moving averages (SPX): Back firmly above the 5-day moving average and holding all other moving averages as well.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Industrials were the market’s biggest winner on Friday and poised for new all-time highs today. Financials made a big move as well, and looking to take out its April highs. Three solid days of gains unfolding in that sector. Healthcare broke out of its bull flag pattern on Friday. Materials continues to be the markets strongest sector, while Energy is likely to breakout of its six-day coiling pattern. 
My Market Sentiment
Solid bounce on Friday for the S&P 500 that should see an open at all-time highs today. There will be a large gap unfilled at the open, so the key for the bulls will be to keep that gap from getting filled today, as has been the case so many times of late.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 40% Long
