My Swing Trading Approach

I will look to add another couple of positions to the portfolio today, but hold off adding any additional positions, until the downtrend is broken.  

Indicators

  • VIX – VIX dropped off of their highs of the day, in a big way. Despite only being down 4% yesterday, the overall move lower off of its highs of the day, was much larger. VIX, like SPX is coiling. 
  • T2108 (% of stocks trading below their 40-day moving average): A significant move yesterday, pushed the T2108 higher by 22%. The current reading is 33%. 
  • Moving averages (SPX): Broke back above the 5, 10 and 20-day moving averages yesterday. Solid move for the index, despite low volume. The 50-day moving average will be in view today. 
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Utilities was the market’s big winner yesterday. Potential bottoming process underway in a very downtrodden sector. Consumer Cyclical lagged the most, while the other sectors traded in line with each other. Energy is putting together a double bottom, while Technology is poised for a test of its all-time highs again. 
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My Market Sentiment

A triangle pattern is forming, and while yesterday’s follow through was important, price needs to hold the trend-line underneath while breaking above the downward trend-line established off of the January highs, in order to become decisively more bullish on this market. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 2 Long positions

Recent Stock Trades – See My Past Performance Here. 

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