My Swing Trading Approach

Still 100% cash, but will look to add 2-3 positions in the early going on this market rally. 

Indicators

  • VIX – Nowhere near the same amount of fear in the VIX as was seen back in February during that particular sell-off. Absolutely a bullish divergence at this point. 
  • T2108 (% of stocks trading below their 40-day moving average): Not quite an oversold reading. Energy holding up during the sell-off, certainly helps. But again, the fear is not seen here as it was in February, when it creeped into single digits. 
  • Moving averages (SPX): The 200-day moving average is currently being tested, and looking to bounce just as it did back in February.
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Technology has seen a real beat-down of late, but I would suspect that it will be at the top of the list of sectors leading the market higher today – same goes for Financials. Energy has held up quite remarkably over the last two weeks. 
patterns to profits email

My Market Sentiment

The market continued its extreme sell-off on Friday, and closed directly on the 200-day moving average, setting it up today for a massive bounce off of the key MA, just as it did back in February. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 100% Cash Position

Recent Stock Trades – See My Past Performance Here. 

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