My Swing Trading Approach

I booked my profits in AMZN and NFLX yesterday as the market was starting to pullback. I took +2.5% in NFLX and +1% in AMZN. Right now I am net short on the market, but won’t hesitate to get long again, if the conditions merit that. 

Indicators

  • Volatility Index (VIX) – While it pulled back for a third straight day, it was only down 1.4% and formed a hammer candle suggesting it wants to bounce higher here. Solid chance here we see a test of the December highs and eventual October highs. 
  • T2108 (% of stocks trading above their 40-day moving average): This chart has turned bearish in my opinion, and looks to retest the December lows established last week. 
  • Moving averages (SPX): Price broke above the 5-day moving average, and closed just 1 point above it. Rejected at the 20-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

I’ve put together a very extensive post on all the sectors that I recommend you read, by clicking here. 
patterns to profits email

My Market Sentiment

For a fourth straight day, the market is trying to bounce, but the gains to-date has been meager and sets up for a potential break below support at the November and December lows. Legitimate bounces don’t fade like they have over the last two trading days, which tells me there is still more selling to come. 

S&P 500 Technical Analysis

swing trading strategy report 345

Current Stock Trading Portfolio Balance

  • 1 Short Position

Recent Stock Trades – See My Past Performance Here. 

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