My Swing Trading Strategy

I added one new long position on Friday. Still concerned about the ability of this market to march all that much higher, which is why I am extremely light at this juncture. Completely willing to add short positions and wouldn’t be surprised to see myself do so before the end of today’s trading session. 

Indicators

• Volatility Index (VIX) – A 10% drop took the VIX down to 17.04. The last two sessions has seen a very hard drop from the 21’s to its current reading, which simply adds to the market choppiness of late and uncertainty. 
• T2108 (% of stocks trading above their 40-day moving average): The hard bounce continues taking it back up to 49% from  just 31% a few days earlier. Provides some legitimacy to the recent bounce, but still needs another 40% to get back to where it was trading at the September highs. 
• Moving averages (SPX) Broke back above the 5-day and 50-day moving average, but just below the 10-day moving average. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Utilities and Staples were the big winners on Friday’s rally. That is a little bit concerning, even though everything else managed to rally too. It showed that investors were still preferring the confines of safety over higher-risk growth names. Energy barely participated in the rally,m and the chart is as problematic as ever. 

My Market Sentiment

The bulls have seen a solid two day bounce out of this market, with some lingering short-term resistance to contend with today, if it wants to make any attempt at new all-time highs. Double top still in play and casts a shadow over this market. 

Current Stock Trading Portfolio Balance

• 1 Long Position.

Recent Stock Trades – See My Past Performance Here.