My Swing Trading Strategy

I was stopped out of Twitter (TWTR) for a +4% profit yesterday. I hate getting stopped out, but it does signify a solid, disciplined, and well-executed trade. I added one additional trade, and may add another today depending on how the market performs, and whether it wants to continue the selling that we saw for much of yesterday. 

Indicators

• Volatility Index (VIX) – VIX traded much higher yesterday before its typical afternoon sell-off for only a 1.8% gain instead. 
• T2108 (% of stocks trading above their 40-day moving average): A massive 17.5%  rally yesterday that sent the indicator back up to 58%. This is a real head-scratcher because the market went absolutely nowhere yesterday. This was in large part due to small caps showing incredible strength yesterday. 
• Moving averages (SPX): Price is currently trading above all major moving averages.  
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy continues to rally for a fourth straight day. Financials are showing a similar pattern and both have been rallying the market higher over the past week. Technology and Utilities continues to struggle for a second straight day. Healthcare continues to look like dead money. 

My Market Sentiment

Yesterday was an awkward market session. Small caps were very strong, large caps were weak, technology and the Nasdaq was weak, yet breadth was very bullish. There very little in the way of anything making sense in the market yesterday. There is some resistance overhead that needs to be accounted for and figured out by price. So far, price keeps seeing rejection at the old trend-line. 

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.