My Swing Trading Strategy

I’ve been sitting on my hands lately and a lot of the traders I talk to on the regular, are telling me the same thing. There aren’t a lot of trade opportunities out there and the market is lacking an incredible amount of conviction currently, which makes any aggressive approach to trading very problematic and dangerous. 

Indicators

• Volatility Index (VIX) – Keeps testing and popping off of that 13.30 level. Struggling with a push much lower, and sets up for a potential bounce here. 
• T2108 (% of stocks trading above their 40-day moving average): Notable divergences that cast a cloud of bearishness on this market. Needless to say, the bulls are going to need to see a strong buying spree to change that going forward. Only 58% trading above their 40-day moving average despite being within 1% of all-time highs. 
• Moving averages (SPX): Price is currently trading above all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Healthcare continues to be the major driver in this market, and seeing a drastic improvement in its chart as well. Industrials are showing a lot of life as well, while Technology and Energy continues to lag the market’s rally. Capital out of these two and into Healthcare and Industrials appears to be the move of late, while all of your safe sectors are holding up great. 

My Market Sentiment

The doji candle patterns 4 of the last 5 trading sessions are beyond odd, as price simply doesn’t want to move during regular trading hours, but instead opts for overnight price movements. Volume is insanely low as well, which creates a struggle for the bears to sustain any move to the downside. Break through resistance and then all-time highs, and the market should inspire further price gains in the future.

Current Stock Trading Portfolio Balance

• 1 Short Position.

Recent Stock Trades – See My Past Performance Here.