My Swing Trading Approach

I may consider adding some short positions if the bulls manage to break below the support levels established last week on SPX. Low volume market filled with a number of false moves, makes trading less, the better option. 

Indicators

  • VIX – Remains in a consolidation pattern, but expect a breakout fairly quickly to the upside, if the market continues faltering. 
  • T2108 (% of stocks trading below their 40-day moving average): False breakout for now, as the indicator dipped back below 66%. 
  • Moving averages (SPX): Sitting right on top of the 5 and 10-day moving average, both of which will likely break at the open today. 
  • RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Utilities has seen some buying interest in recent days, while Financials broke out of its bull flag trading pattern yesterday. Staples continue to exhibit a bear flag pattern, while Energy saw a significant amount of profit taking in the afternoon part of the trading session. Industrials flirting with a breakout head-fake. 
patterns to profits email

My Market Sentiment

Yesterday’s afternoon collapse definitely raises concerns on the sustainability of the current market run. Bulls need to hold the lows from last week, or the potential for a retest of the 200-day MA looms large. Lack of volume in the market of late is making current price swings very unreliable. 

S&P 500 Technical Analysis

swing trading strategy report 207

Current Stock Trading Portfolio Balance

  • 4 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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