My Swing Trading Strategy

No additional positions were added yesterday. I increased the stop-loss on a couple of trades and held everything overnight. Right now the portfolio is doing incredibly well, and unless the market gives me justification to add another position, I’ll stand aside. I have a number of high quality trade setups though that I am waiting to pull the trigger on. 

Indicators

• Volatility Index (VIX) – A 5% pop yesterday but still below the declining trend-line off of the May highs, which could be tested today. 
• T2108 (% of stocks trading above their 40-day moving average): Despite the SPX sell-off yesterday, only a 3% sell-off on the indicator. Stocks are not seeing a lot of profit taking in this market pullback, and is more of the work of a few big stocks dragging the market down at the moment (i.e. $AAPL and $BA yesterday). 
• Moving averages (SPX): Broke back below the 5-day moving average yesterday. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials saw a fair amount of selling yesterday while, Technology and Healthcare led the way lower. All three sectors are holding strong on their current trends though. Energy is enticing, but the price action in this sector is as sketchy as can be. The defensive sectors showed the most support yesterday as the finished all in the top three. 

My Market Sentiment

Similar pullback on SPX, except more shallow this time, to the pullback that was seen in late June. However, check out the chart below for a secondary pullback level for this market to potentially find support at, which lines up with the previous two all-time high marks. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 30% Long

Recent Stock Trades – See My Past Performance Here.