My Swing Trading Strategy

I wasn’t too aggressive yesterday, as the market simply gapped and flat-lined the entire day. That has been the norm for gaps in the market of late. Very rarely do you see a strong push higher throughout the day. As a result, I only added one position yesterday and held on to my other trade as well. 

Indicators

  • Volatility Index (VIX) – An 8.6% drop – that was pretty much expected and inline with the market strength yesterday. Down to 16.88, which also places it at the lows from 8/8. Break that level, and there is a very good chance we see another move below 15 soon. 
  • T2108 (% of stocks trading above their 40-day moving average): A 13% rise, taking the indicator to 37%. Considering that SPX is only 3% off its all-time highs, it surprises me just how weak stocks have been underneath the surface. 
  • Moving averages (SPX): Came close to testing the 20-day moving average, but couldn’t push through. The 50-DMA is right above as well, and both could see tests today or later this week. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy led the way, and continues to be one of the stronger sectors of late and still has plenty of room to run if it wants. I could easily see another 4-5% upside in this sector, but the it is also the least reliable sector to trade in 2019. Materials really struggled to find any traction yesterday, and looks more like a dead cat bounce than anything else. Utilities, Staples and Real Estate continue to shine as the most bullish sectors on the daily chart. 
patterns to profits training course

My Market Sentiment

A solid three day rally out of this market, but lets face it, one bad day, and we’ve seen this plenty of times this month, can wipe out those gains. Price is still stuck in a sideways pattern and plenty of stocks still remain stuck in a downward trend. Until price can break out of this box shown in the chart below, I expect you’ll see plenty of back and forth from the market. swing trading strategy report 499

Current Stock Trading Portfolio Balance

  • 2 Long Positions. 

Recent Stock Trades – See My Past Performance Here. 

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