My Swing Trading Approach

I will be looking to add 1-2 new positions to the portfolio as long as the early morning strength can sustain itself. Playing the rising trend-line off off the May lows, offers a great buying opportunity in this market. 

Indicators

  • VIX – Tested and rejected at the 50-day moving average yesterday. Looking for further downside today. 
  • T2108 (% of stocks trading below their 40-day moving average): Pullback of 2% yesterday falls in line for the downside seen from the market of late. If the market bounces big today, I’ll be interested in how strong this indicator performs as well. 
  • Moving averages (SPX): Tested the 20-day moving average and successfully held it. Yesterday marked a 5/10 MA crossover to the downside. 
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Industries to Watch Today

Utilities continues to see a strong bounce in recent days, but I expect it to be short lived as it remains in a downtrend overall. Staples has formed an impressive base and consolidated nicely above its 50-day moving average. Expecting further upside. I still don’t trust the price action out of Energy or Financials. Discretionary, Technology and Healthcare remain my go-to sectors.  

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My Market Sentiment

SPX has pulled back 3 of the last 4 trading sessions, and the pullback, while on higher than average volume, appears to be a healthy one that has taken price back to the rising trend-line off of the May lows and held. Now looking for the bounce for a bigger move higher.   

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 4 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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