My Swing Trading Approach

I continue to follow the sectors that are setting up the best right now. Earnings this week, so caution as it pertains to specific industries (banks) that are reporting soon has to be respected. I will continue to add more positions as long as the market plays nice. 

Indicators

• VIX – Down 6 out of the last 7 trading sessions, and seeing a significant acceleration to the downside, dropping below 13 to 12.69. 
• T2108 (% of stocks trading above their 40-day moving average): Industrials, Energy and Financials all participating in a big way yesterday, brought a massive rally to the T2108 to 67% – a rally of more than 10%. Look for whether it can climb back above 70%. 
• Moving averages (SPX): Trading above all the major averages today. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials and Industrials, two sectors that have noticeably lagged the market over the past few weeks, showed huge signs of life yesterday, and a sector rotation into them from Utilities. Discretionary continues to ride in the middle of the pack – solid and healthy, while Energy and Technology trying keep themselves near the top. Healthcare with the most momentum in the market at the moment but getting overbought in a hurry.  

My Market Sentiment

Strong rally from the market yesterday, that sets the bulls up to test the June and March highs. Watch to see whether the bulls can break through this level or whether traders decide to book gains. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 5 Long Positions

Recent Stock Trades – See My Past Performance Here.