My Swing Trading Strategy

I added two new long positions to the portfolio, both finishing in the green, and increasing my long exposure in the process. If I add more long exposure today it won’t be more than just one long position. So far, I have not seen any reason in this current market condition to get bearish to any degree. 

Indicators

  • Volatility Index (VIX) – The moves in the VIX to the downside will start to get smaller and smaller as we approach the 11’s and 12’s. Yesterday’s 3.9% drop took the index down to 14.61. Good chance we see settle in the coming weeks between 11.5 and 12. 
  • T2108 (% of stocks trading above their 40-day moving average): This index has rapidly improved over the last six trading sessions, rallying 10%, to finish at 69%. This is the highest reading since March 5th, and also broke out  of the declining trend-line that goes back to the February highs. 
  • Moving averages (SPX): Tested and held the 5-day MA. Price is currently trading above all major moving averages.  
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy started strong but faltered big, on the possible easing of Iranian sanctions, going from the strongest to the weakest sector. Again, further reason why the Energy sector is very difficult and at times nearly impossible to trade. Technology is re-emerging as the go-to sector, and breaking out of a four day consolidation pattern yesterday. Utilities rebounded as well and Materials continue to rise parabolically.  
patterns to profits training course

My Market Sentiment

Really good move for the market yesterday, and testing the broken trend-line once again. Now that price is back above 3000, I suspect a move back to the all-time highs. Breadth is supporting the rally, and overall, market internals are very healthy. 
swing trading strategy report 515

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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