My Swing Trading Approach

I didn’t add any new trades to my portfolio yesterday, as price action wasn’t favorable, and breadth was negative on the NYSE. I booked profits in Micron (MU) (again!) for a +2.8% profit. I’m cautious about the market struggling with overhead resistance. I won’t rule out adding a new position to the portfolio today, but it needs to show me a willingness to want to push through resistance. 

Indicators

• Volatility Index (VIX) – A pop of 2.8% yesterday has the VIX rising for the third time in the last four days. I would not be surprised to see further upside for this indicator going forward as it is basing quite nicely here. 
• T2108 (% of stocks trading above their 40-day moving average): Not moving much over the last two days despite the market making some respectable gains during that same time period. These divergences in the short-term are certainly concerning. 
• Moving averages (SPX): Trading above all the major moving averages.
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Big move out of Real Estate yesterday that has the sector breaking out yet again. Healthcare stretched to the upside with massive gains over the past two weeks – same goes for Technology. It is at a point where profit protection should be on the forefront of every trader in these two sectors. Discretionary moving again as well, but not over-stretched. Financials missed out on an excellent opportunity to breakout yesterday and it didn’t. It will need to do so today .

My Market Sentiment

Price action on SPX is trying to breakout of the upper channel and creating a new level of rising, near-term support for the bulls to rely  on. Current level of support remains 2801, and becoming a distant memory at this point. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Long Positions

Recent Stock Trades – See My Past Performance Here.