My Swing Trading Approach

Strong momentum right out of the gate today and the potential this week for a move back to all-time highs, will have me looking for 1-2 new long setups today.  

Indicators

  • Volatility Index (VIX) – Gave up its gains on the day in the final hour of trading. Looking at a break back into the 11’s today. 
  • T2108 (% of stocks trading above their 40-day moving average): Bullish divergence intraday as there was a much overdue bounce of 5%, putting the index back to 41%. Still oversold, and likely to see further improvement today. 
  • Moving averages (SPX): Closed on the 5-day moving average and 10-day moving average which have both converged together. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Real Estate had a massive bounced off of key support on Friday. Utilities had a similar bounce. Neither I would trust though. Healthcare continues the steady climb higher though. Staples appears ready to break down. Technology is very close to a breakout to the upside here. Watch for the bounce in Industrials. I did an in-depth analysis on each sector last week that you can read right  here. 
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My Market Sentiment

Down five of the last six days. October has been bullish in midterms years, and we are setup for a bounce higher today. Though I don’t expect anything to change that will eliminate the bearish wedge that continues to tighten itself around price. 

S&P 500 Technical Analysis

swing trading strategy report 297

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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