My Swing Trading Approach

I added one additional short position to my already bearish portfolio on Friday. I could add another one, if the market really took a dump today, but I doubt that I do. However, I could see myself cover my positions today because the market puts in a bottom, or I ride out my current short positions as they currently are. 

Indicators

• Volatility Index (VIX) – Bouncing off of the 200-day moving average, but a long shadow on top of the candle suggests that the move isn’t a very strong one. 
• T2108 (% of stocks trading above their 40-day moving average): Two days of this indicator pushing lower, but still above its 5-day moving average. Sitting currently at 35%. Uptrend still intact. 
• Moving averages (SPX): No damage done yesterday, with price bouncing perfectly off of the 200-day moving average and holding the 5-day moving average into the close despite trading below it for most of the trading session. 
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Sectors to Watch Today

Not an ideal arrangement on Friday with Staples and Utilities leading the way higher – the only two sectors to do so, while Technology, Materials and Discretionary lagged the most. I did a full Sector report on Friday that you can read here. 

My Market Sentiment

Perfect bounce off of the 200-day moving average on Friday, while managing to hold on the existing trend-line off of the October lows. However, the latter is likely to be broken at the open this morning. Failed to establish a new higher-high on the daily – that didn’t happen, but it did match the previous high. Today is a crossroads for the market. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Short Positions

Recent Stock Trades – See My Past Performance Here.