My Swing Trading Approach

With the large gap down this morning, the market is in dangerous territory, and risks breaking Monday’s lows and eventually the February intraday lows. As a result, I will stay put in my trading, until the market has provided me with a more definite trading edge to work with. 

Indicators

• VIX – A 10% sell off yesterday, didn’t do much to damage the chart. Remains range bound over the last seven trading sessions. 
• T2108 (% of stocks trading below their 40-day moving average): Series of higher-highs and higher-lows remains in place with yesterday’s 30% rally (current reading is at 35.6%). Right now, this is a solid bullish divergence but could easily come under fire today, with weakness in the pre-market. 
• Moving averages (SPX): Recaptured the 5-day and 200-day moving averages. 
• RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Energy, Industrials and Healthcare led the market bounce yesterday, while Utilities lagged.  Energy showing the potential still for a base breakout, while Healthcare is exhibiting a double bottom similar to that of the S&P 500. Technology while having been hammered over the past month, is still one of the best long-term charts. 

My Market Sentiment

The market is coming into the day in a precarious situation with the trade war escalating overnight with China. The 200-day moving average will be violated at the open, and a strong possibility that we see a significant sell-off that could take us, ultimately, back to the February lows to be retested. The double bottom, talked about below, is in jeopardy of being nullified today. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 Long Positions

Recent Stock Trades – See My Past Performance Here.