My Swing Trading Approach

A number of my profitable positions were stopped out yesterday. That’s what the stops are there to do – protect profits! So, if this market can sustain the early morning strength being seen so far, I will look to add 1-2 new positions to the portfolio today. 

Indicators

• VIX – Curbed some of its gains yesterday, but still a monster rally for it, and the highest close seen since 12/4/17. VIX has been very bullish to start the year, flying in the face of a very bullish market. 
• T2108 (% of stocks trading below their 40-day moving average): This indicator gives me pause. Dropped 8% down to 64%. Not where it should be for a market hitting new all-time highs every day. 
• Moving averages (SPX): Tested the 5-day moving average but held well. 
• RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Defensive sector was the only one to finish higher yesterday. Basic Materials and Energy were the downside leaders, with Cyclical not too far behind. Despite yesterday’s selling, the bullishness remains in these industries as well as Healthcare, Technology, Industrials, and Financials.

My Market Sentiment

You could see another gap fill today. It is definitely worth paying attention to. Yesterday was a shot fired by the bears, and there could be more in store here. Tread carefully. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 long positions

Recent Stock Trade Notables:

• Hess (HES): Long at 48.50, sold at 53.42 for a 10.1% profit. 
• Splunk (SPLK): Long at 83.11, sold at 88.10 for a 6% profit.
• Nvidia (NVDA): Long at 227.10, sold at 221.32 for a 2.5% loss.  
• Square (SQ): Long at 40.41, sold at 41.16 for a 1.9% profit.
• Fifth Third Bancorp (FITB): Long at 30.92, sold at 31.80 for a 2.9% profit.
• US Steel (X): Long at 35.38, sold at 36.90 for a 4.3% profit. 

See my entire swing-trading past performance here.