My Swing Trading Approach

I’m coming into today with two long positions, following a 100% cash position at the start of Friday. I will look to add 1-2 new long positions today, if the bulls manage to reverse the morning’s slight weakness and rally the market higher. 

Indicators

• Volatility Index (VIX) – VIX saw a dramatic sell-off on Friday with a 9.2% sell-off, weakening all session long, and likely to continue this week with the historically bullish, holiday week. 
• T2108 (% of stocks trading above their 40-day moving average): A 10% rally suggests higher prices are in store on the indices. 
• Moving averages (SPX): Held the 20-day, and broke back above the 5-day moving average yesterday. The 10-day MA is next in line, along with the 200-day MA. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Utilities are hitting their head on a rising channel upper band. I would suspect there is the potential for a hard pullback here, or consolidation at the very least. Healthcare continues its bounce off of the 200-day MA – strong relative strength. Energy formed a lower-low last week, and really the the only sector to do so. Huge weakness in that sector. Financials still building upon that inverse head and shoulders pattern. Technology showing some troubling signs, and needs Apple (AAPL) to start rallying again. 

My Market Sentiment

Mild weakness overnight in the futures, but we are coming into what is traditionally a very bullish holiday week. The 200-day moving average is nearby, and of course that inverse head and shoulders pattern is still in play, and should it confirm this week, would create a higher-high. Also, because of it being Thanksgiving, expect a light volume week ahead. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 2 Long Positions. 

Recent Stock Trades – See My Past Performance Here.