My Swing Trading Approach

Added two new positions to the portfolio on Friday, looking to add 1-2 more today. The market, simply isn’t breaking, and the trend can’t be wrestled with. 

Indicators

• VIX – VIX finally broke on Friday, dropping 7.8% to 11.27. I suspect we will see a further move in the days ahead, down into the 10’s and possibly sub-10. 
• T2108 (% of stocks trading below their 40-day moving average): Significant move on Friday of 7.8%. Closed the day at 68%. Stocks not overextended at this point. Still concerns me that we are not trading well over 70%. 
• Moving averages (SPX): Trading above all the major moving averages. 
• RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Staples continuing to rally hard of late, Cyclicals following right behind. Potential for a bull flag in Energy. Financials, Tech, Healthcare, Industrials all very strong. Basic Materials may be looking at another move higher here. 

My Market Sentiment

SharePlanner Reversal Indicator confirmed a bearish signal on Friday, likely to see some consolidation in price in the near-term. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 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.