My Swing Trading Approach

I plan to let the stop-losses in my existing long positions do their work, while my one short position should help to mitigate any of their losses. A major sell-off today that would put price back into the gap from Wednesday’s price action and would likely stir the bears to start shorting aggressively once again. I will consider increasing my short exposure should the market show continued weakness today.  

Friday’s Swing-Trade Ideas:

Take a look at three trading ideas to prep you for the trading session.

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Long Expedia (EXPE)

expe swing trading strategy

Long Boeing (BA)

ba swing trading strategy

RELATED: My Patterns to Profits Training Course

Short Continental Resources (CLR)

clr swing trading strategy

Indicators

  • Volatility Index (VIX) – A 2.2% rally yesterday, to keep the sell-off at bay for a day. VIX showing signs of wanting to rally today amid a gap lower at the open for the major indices. 
  • T2108 (% of stocks trading above their 40-day moving average): Indicator held up very well and in line with what one would expect with a meager amount of selling yesterday. Current sitting at 40%. 
  • Moving averages (SPX): No damage yesterday on the charts but has yet to test the 50-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials continue to be the market’s hottest sector of late, rising for a ninth consecutive day, but extremely stretched here. Utilities probably the most bullish chart over the past two months as it continues to establish higher-highs and higher-lows during that time period, which is pretty impressive considering the market conditions. Industrials look as if it could easily resume its downtrend, as it is nowhere near making a higher-high. The same could be said about Technology too. Materials struggling around overhead resistance and probably the most bearish chart, coupled with Energy. 
patterns to profits email

My Market Sentiment

Following a rally of more than 200 points, the bulls are showing signs of trying to weaken once again for the same reasons – Fed, China and the continued sell-off in oil. I didn’t add any long positions yesterday and have tightened up the stops. 

S&P 500 Technical Analysis

Swing Trading Strategy Report 324

Current Stock Trading Portfolio Balance

  • 3 Long Positions, 1 Short Position

Recent Stock Trades – See My Past Performance Here. 

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