My Swing Trading Approach

I will be looking to add additional tech exposure today as well as raise the stops on my existing, profitable positions. Market has to hold up in the early going though, for me to commit additional funds. 

Indicators

  • Volatility Index (VIX) – Down 1.9% yesterday and still range bound. 
  • T2108 (% of stocks trading above their 40-day moving average): An additional 4% drop yesterday down to 55% yesterday, keeps with the bearish divergence narrative with the overall market. 
  • Moving averages (SPX): Held the 10-day moving average and closed just a smidge below the 5-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials still the hottest sector in the short-term. Downtrend off of the January highs was broken yesterday – that’s big time for the index that has been bearish for the last six months. Technology coiling at the highs and will breakout following Google’s earnings. Healthcare ready to breakout of its bull flag today. Discretionary struggling a little bit over the pat few days to find its footing. Materials showing signs of breaking down again. 

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My Market Sentiment

Low volume market conditions coupled with a tight trading range, hasn’t made for the most thrilling a trading sessions. Nonetheless, key support held yesterday, and follow through to the upside following Alphabet’s Google’s (GOOGL) earnings blowout. Often times the market will fade the market strength following a big tech company’s earnings, so be aware of that possibility as well. 

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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