My Swing Trading Strategy

I covered my short position early on yesterday for a loss, and added one additional long position to the portfolio. I will not be looking to add any additional long positions to the portfolio, and will manage my existing ones today. 

Indicators

  • Volatility Index (VIX) – Dropped 5.7% yesterday to 16.24, and remains below the declining trend-line off of the August highs. Setting up for another test into the 13’s in the coming days. 
  • T2108 (% of stocks trading above their 40-day moving average): A 4.2% bounce as it climbed back to 64% and holding support underneath from the declining trend-line going back to the February highs. 
  • Moving averages (SPX) Reclaimed the 5-day moving average but rejected at the 10 and 20-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology and Discretionary were back at the top yesterday, however the overall chart from the past three months have shown very little impetus for pushing out of its broader trading range. Pullback in Telecom has shown a healthy pullback and may be ready to bounce following a pullback during the second half of September. Heathcare still looks to be on the verge of a major breakdown while Energy still putting in lower-lows and lower highs. 
patterns to profits training course

My Market Sentiment

The biggest issue with this market right now is that with the lack of volume and its inability to sustain rallies into the afternoon. Gaps love to be closed as soon as they are created. New quarter upon us – last year it was the jump start of a very bearish fourth quarter..

swing trading strategy report 528

Current Stock Trading Portfolio Balance

  • 5 Long Positions.

Recent Stock Trades – See My Past Performance Here. 

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