My Swing Trading Approach

I went 100% cash once the selling began yesterday. Late day sell-offs are making this a very difficult market to rely on here. Trading a small number of positions is a must here.

Indicators

  • VIX – Starting to show signs of a larger bounce being possible here. Now sitting at 19.85, following yesterday’s 6.8% rally. 
  • T2108 (% of stocks trading below their 40-day moving average): An 18.5% decline yesterday taking the reading down to 25%. This is horribly low, and likely we’ll see another move into the teens again. 
  • Moving averages (SPX): Sitting on the 20-day moving average after crushing the 5, 10, and 50-day moving averages yesterday. Not a good look for the market at all here.
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Energy, Basic Materials, and Healthcare led the way to the downside. Bear flags galore were confirmed yesterday, and Technology may have a double top pattern in place.  
patterns to profits email

My Market Sentiment

Lower-high may have been established yesterday on the chart, and possibly a new down-trend in place from a long-term perspective. Yesterday’s late day sell-off damaged the charts quite a bit. 

S&P 500 Technical Analysis

swing trading strategy report 149

Current Stock Trading Portfolio Balance

  • 100% Cash

Recent Stock Trades – See My Past Performance Here. 

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