My Swing Trading Strategy
I added two new long positions yesterday, with unique setups aside from the recent market bullishness. I’ll also look to add a short position this morning, if the bears come out strong today.
Indicators
- Volatility Index (VIX) – Continuing to hold support off of the rising trend-line from the November lows of last year. I think it is likely to hold, unless there is still massive upside still remaining in this market in the short-term.
- T2108 (% of stocks trading above their 40-day moving average): A drop of 4.6% in the previous trading session, keeps it in that 60% range. Not as much as enthusiasm among stocks as a whole, even though this market continues ripping higher.
- Moving averages (SPX): Trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Capital continues to flow into Energy and Materials which have been two of the worst sectors of late. As a result, the capital continues to flow out of Real Estate, Utilities and Healthcare. Cyclical and Discretionary are starting to pop up again though.
My Market Sentiment
Granted, the market is stretched, but the breakout has yet to see any real slow down in momentum. The market is still predisposed to buy the dip. Before that can change, I’ll need to see a big washout to the downside, and signs of panic selling. So far that has yet to happen.
- 3 Long Positions
