My Swing Trading Approach

I’m 100% cash coming into the day, and was not affected by the monstrous sell-off yesterday. I took a small loss in Apple (AAPL) yesterday, but that was the only position I had to deal with. Not bad! Now I will sit back and wait to play the bounce higher, when it does, in fact, come.  

Indicators

• Volatility Index (VIX) – VIX rallied an amazing 44% yesterday to 22.96 – the highest reading since 4/2/18. An absolute breakout, but will be difficult to sustain once the shorts start to cover their positions. 
• T2108 (% of stocks trading above their 40-day moving average): An insane 46% sell-off on the indicator – one of the largest ones you’ll see. Current reading is at 16.7% and the lowest reading since 2/9/18, when the market bottomed. 
• Moving averages (SPX): SPX broke its 50-day moving average and poised to test the 200-day MA, possibly as soon as today. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

All eleven sectors sold off yesterday, but Utilities remains the strongest sector currently. Telecom broke the rising trend line off of the May lows. Staples continued its roll over, while Technology showed the greatest amount of weakness, breaking its 200-day moving average and its lowest closing since 5/4. 

My Market Sentiment

Unbelievable how today we are actually talking about a test of the 200-day moving average. Conditions deteriorated so rapidly yesterday, and now we are looking at the potential for a dead cat bounce. The market is incredibly oversold here and while ultimately you should expect more downside, the potential for a bounce looms large. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 100% cash.

Recent Stock Trades – See My Past Performance Here.