My Swing Trading Approach

I didn’t buy any stocks yesterday. I stayed put, and may do the same thing again today. If the bulls can turn things around, I’ll consider adding some long exposure, but not ready to start aggressively short this market. I’ll see how the day unfolds. 

Indicators

  • VIX – Took a solid hit yesterday of 8.5%. Still elevated (relatively speaking) at 13.54. 
  • T2108 (% of stocks trading below their 40-day moving average): Stocks still deteriorating under the surface – only 53% of stocks are now trading above their 40-day MA. A 3-point drop from yesterday. 
  • Moving averages (SPX): Still trading below the 5-day and 10-day moving averages. If today’s weakness persists, expect a test of the 20-day MA. 
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Surprisingly, Real Estate showed the most life to it. Energy looks like it could be a real problem again, while Industrials are trading just a bove a key, short-term support level that if broken, could see a 4-6% pullback. 
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My Market Sentiment

Yesterday’s attempt at a bounce never looked right to me. Breadth was extremely poor, and stocks as a whole, didn’t look ready for it. Today’s pre-market action looks to further cement that theory, and it is now very possible we see a test of the 20-day moving average. 

S&P 500 Technical Analysis

swing trading strategy report 131

Current Stock Trading Portfolio Balance

  • 2 long positions

Recent Stock Trades – See My Past Performance Here. 

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