My Swing Trading Approach

I didn’t add any new long positions on Friday, as the market conditions and breadth was poor. I booked profits in Take-Two Interactive Software (TTWO) at $134.30 for a +2% profit. I am open to adding another position, but the bulls will need to show up in order for me to do so. Sideways or negative price action won’t do it. 

Indicators

• Volatility Index (VIX) – Five day losing streak for the VIX, dropping another 2.4% down to 12.07. Potential bounce in play here, testing key support in the 11.90 area. 
• T2108 (% of stocks trading above their 40-day moving average): Interestingly enough, has pushed higher the last five days, but has hardly moved or gone anywhere. This is indicative of poor market breadth. 
• Moving averages (SPX): 5-day moving average back above the 10-day moving average, price is trading above all the major MA’s. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials showed life for the first time in ages yesterday, but still a sector that remains dead-weight. Industrials still one of the market’s best sectors and should be a key part of the portfolio. Materials remains in a downtrend. Stay away Utilities consolidating over the last seven trading sessions, look for a break higher form here. 

My Market Sentiment

I am not a fan of the market breadth right now. We are looming just below all-time highs, and half the stocks are struggling to show the same enthusiasm. Bearish wedge on the charts still a factor going forward as well. Be careful. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 Long Positions

Recent Stock Trades – See My Past Performance Here.