My Swing Trading Approach

Still a very poor trading environment of late. Gap-ups in an oversold market makes for nearly impossible trading conditions. Remain patient in this market and don’t be overly aggressive with either side of the trade.  

Indicators

  • Volatility Index (VIX) – Closed slightly lower on Friday, but still remains propped up. Consolidation makes for an uncertain move going forward. 
  • T2108 (% of stocks trading above their 40-day moving average): Small bullish divergence on Friday with the T2108, but unable to break the 10-day MA since 9/21 – really amazing, signifying for how long this market has been selling off. 
  • Moving averages (SPX): Fractionally below the 200-day moving average, but I won’t consider it broken, until there is a clear break below. Resistance at the 10-day MA for a third straight day. 
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Sectors to Watch Today

Staples were a major leader on Friday, followed by Utilities. These are not the two sectors you want leading the market higher. Your growth sectors of Healthcare, Discretionary and Technology finished the trading session as the worst performing sectors. 
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My Market Sentiment

Yesterday saw a bullish start to the day, get quickly faded and result in barely-negative trading session for SPX. The story is though is that the market couldn’t hold on to its gains at all, despite a very favorable bounce opportunity. Today the bulls are looking at a bounce yet again, though I would be weary of the gap higher holding. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 1 Long position

Recent Stock Trades – See My Past Performance Here. 

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