My Swing Trading Strategy

One new long position added to the portfolio. I took profits in McDonalds (MCD) on Friday as I became concerned with the amount of selling on average volume, when the market was rallying hard. I took profits of +1.5%. Thermo Fisher Scientific (TMO) I took small profits in. I’ll look at adding 1-2 new long positions today as well. 

Indicators

• Volatility Index (VIX) – Cannot sustain a multi-day gain of any kind really. Giving up all the previous days gains, and dropping 7% back to 12.30. Look for a move into the high 11’s where there is a decent amount of support at 11.80’s. 
• T2108 (% of stocks trading above their 40-day moving average): A strong 11% rally taking it back to the top end of the range and pushing the indicator back up to 61%. Still not the reading you’d expect for such an incredibly bullish market of late. 
• Moving averages (SPX): Trading above all major moving averages.  
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

All about the commodities and rallying the downtrodden sectors and stocks more than anything else. While all sectors were higher except for Utilities, the market is now looking for bargain plays to keep this rally going, as well as opportunities in the small caps. 

My Market Sentiment

The bandwagon has people piling on at this point. The rally continues to come on the headline of “Market rallies on renewed China Trade Optimism”. While the market is well over due for consolidation in the very least, it isn’t doing so, and even setting up for yet another gap higher this morning. So at this point the bears have thrown in the towel, and continue to squeeze this market to new highs.

• 2 Long Positions, 1 Short Position.

Recent Stock Trades – See My Past Performance Here.