My Swing Trading Strategy
I added one new long position yesterday, but likely to be careful here with too much additional exposure as the market is stretched thing here at all-time highs and likely to see some consolidation at the very least before moving substantially higher again.
Indicators
- Volatility Index (VIX) – Diverged with yesterday’s SPX rally to all-time highs. $VIX rallied 3.6% to 13.11. Continue to watch to see whether this indicator continues ot print higher prices.
- T2108 (% of stocks trading above their 40-day moving average): Another concerning sign for the market yesterday was the T2108 finishing the day in negative territory as it dropped 0.2% to close at 59%, a very bearish divergence considering the previous rally printed over 70% without achieving all-time highs.
- Moving averages (SPX): Trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Technology very hot yesterday, but could come under some pressure with big earnings out of Facebook (FB) and Apple (AAPL) due tomorrow. Alphabet (GOOGL) disappointed yesterday. This sector has been on an amazing 4-day rally, on strength out of the aforementioned companies and semiconductors. Healthcare, still remains one of the strongest sectors of the past three weeks, but still stuck in consolidation. Financials primed for the breakout here to new all-time highs, and Industrials is in contention for the hottest sector overall.
My Market Sentiment
New all time highs for SPX but not the Nasdaq – only real resistance area for SPX is rising resistance off of the January 2018 highs. Market is certainly overbought, but still holding strong at this point.
- 2 Long Positions.
