My Swing Trading Strategy
One oversold bounce play added to the portfolio. My portfolio is quite conservative considering how much this market is run, and don’t want to be adding a significant amount of new positions at all-time highs here.
Indicators
- Volatility Index (VIX) – Bounced two days in a row, but far from anything special. FOMC today, could certainly provide some fireworks for the indicator if the Fed doesn’t impress the market.
- T2108 (% of stocks trading above their 40-day moving average): SPX down, Russell up, the combination was enough to push T2108 higher yesterday, but in a six day range that it has yet to break out of. Currently at 61%.
- Moving averages (SPX): Trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Despite weakness in everything but small caps yesterday, seven of the eleven sectors still managed to finish higher yesterday. Healthcare hopped on the saddle, but still in a range that it has yet to break out of. Industrials is by far the most impressive sector during this rally, and continues to plow higher 13 of the last 15 trading sessions. Technology, following the $GOOGL earnings, took a back seat and saw a decent amount of selling.
My Market Sentiment
An attempt to run $SPX even higher yesterday quickly ran out of steam and instead saw price finish at the lows of the day. FOMC Statement will create some volatility in the market starting at 2pm today and could result in a potential gap fill from Monday.
- 3 Long Positions.
