My Swing Trading Approach

Closed out IBB yesterday for a +3.8% profit, while adding two additional trades from the hottest sector right now: technology. 

Indicators

• Volatility Index (VIX) – Huge pop of 10.5%. Closed right on the declining trend-line from the 2/9 highs. Good chance we see a pop in the morning and fade in the afternoon. 
• T2108 (% of stocks trading above their 40-day moving average): Breadth was horrible yesterday – with an 8% decline taking the indicator down to only 58% of stocks. 
• Moving averages (SPX): Trading above all the major moving averages.Tested the 5-day MA yesterday but held it perfectly. In play again today and a major sell-off will put the 10-day in play. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

All the sectors traded in the red yesterday, with Healthcare being the least in the red. Still a very strong chart. Utilities – still nothing to get excited about there after price stalled out two weeks ago and dropped back below the breakout zone. Technology chart very similar to the healthcare chart, and very much intact. Industrials on the whole are moving higher, but don’t let your expectations get too wild. Staples on the verge of a breakdown again. Financials gave up all of its gains from the Monday pop. Today is now or never for the sector. 

My Market Sentiment

Keep following the hottest sectors right now, healthcare, tech and discretionary. They should be your main focus. Market breadth is not idea the last few days, and the market is gapping down in the premarket today. I expect the volume will be low ahead of the holiday weekend, barring a major news event. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 Long Positions

Recent Stock Trades – See My Past Performance Here.