My Swing Trading Approach

I held off adding any new long positions yesterday, while continuing to increase my stops on all my trades. I am doing the same again today. The possibility of getting short exists as well, as you have renewed trade war jitters which creates a headline-risk trading environment, allowing for renewed fear in the market. 

Indicators

• VIX – Despite falling 6% yesterday, expect a strong pop in the indicator today. 
• T2108 (% of stocks trading below their 40-day moving average): Small divergence yesterday with SPX rising and T2108 declining slightly. I expect a further decline today if today’s bearishness holds. 
• Moving averages (SPX): Back above the 5-day moving average, but likely to challenge the 10 and 20-day moving averages today depending on the market’s weakness. 
• RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Consumer Cyclical and Technology continues to be your go-to sectors to trade. Healthcare is coming about very nicely as well. With increased worries about a trade war with China, you may start to see the Utilities and Staples start garnering some interest from the street. Financials still remains a heap of trash. 

My Market Sentiment

The trade wars being renewed here, and China showing a willingness to retaliate, isn’t going to do this market any favors, and a pullback to the existing trend-line seems likely here. If it can hold, would offer a great dip buying opportunity. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 5 Long Positions

Recent Stock Trades – See My Past Performance Here.