My Swing Trading Approach

I’m continuing with my cautious approach to the market right now. In the pre-market, the futures are slipping a little bit, so I’ll wait to see whether the market can bottom and rally higher. I don’t expect to add more than 1-2 new positions today, while maintaining profits in my current positions.  

Indicators

  • VIX – Wiped out most of Tuesday’s gains – a good sign the bulls are wanting to drive this market higher. Currently trading at 13.42. 
  • T2108 (% of stocks trading below their 40-day moving average): Healthy bounce yesterday, but needs to crack through major resistance overhead at 66%. 
  • Moving averages (SPX): Sitting on the 5-day moving average, while still holding the other major moving averages. 
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Materials was the rare leader yesterday. While Utilities and Real Estate were the only two sectors to finish in the red – both of which has daily charts that are falling apart. Meanwhile Energy remains the strongest sector, with numerous other sectors, including Materials exhibiting very bullish upward trends. 
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My Market Sentiment

While the bounce was on below average volume, it ultimately allows SPX to hold on to key support and a good sign that the bulls want to hold on to the current rally still. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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