My Swing Trading Strategy
No new positions yesterday – at this point the market is getting a bit stretched, the volume is very light, and price action very contained, and a pullback here is very possible to work off the overbought conditions this market is currently experiencing. Right now my portfolio has some very solid trades working, and will use a pullback to add to it.
Indicators
- Volatility Index (VIX) – Broke a 3-day losing streak, by popping 2.3% yesterday to 12.68. Still poised for a pop back up to the declining trend-line off of the May highs.
- T2108 (% of stocks trading above their 40-day moving average): A 2% decline but still holding the 67% level. Consolidating the past two weeks. Could see this break down in the near future.
- Moving averages (SPX): Currently trading above all the major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Materials and Technology led the market higher yesterday, but between the two, tech is by far the strongest. The healthcare sector saw some strength yesterday, and overall, I don’t like the sector with the headline risk of late and choppiness over the past month. Staples coming out of a bull flag at all-time highs. The strength seen in Energy last week, is now in question following yesterday’s hard sell-off. I’ve put together a full sector analysis report that you can access by clicking here. 
My Market Sentiment
Another record close, but c’mon, we’re talking about a +0.02% day for the bulls. Not much to get excited about. I don’t have huge expectations for the market here. Wanting to get bullish at these levels isn’t the best idea. Far better off waiting for some kind of pullback first.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 50% Long
