My Swing Trading Approach

I didn’t add anything to the portfolio yesterday as the market was dull and not providing much substance to go on. I’ll consider adding a new long position today, if the morning strength can hold. 

Indicators

• Volatility Index (VIX) – Two days in a row where early morning strength resulted in giving back all of its gains and drifting back into the red once again. Likely to test the 200-day MA once again, possibly next week. 
• T2108 (% of stocks trading above their 40-day moving average): Bull flag pattern that shows the market’s strength, with very few stocks slipping lower, despite the market consolidation this week. 
• Moving averages (SPX): Still trading below the 5-day moving average (albeit barely), holding on to the 10 and 50-day moving average well during the 3-day consolidation. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology took over market leadership yesterday, as it came out of its bull flag pattern on the daily chart. Utilities still seeing a lot of interest though, as it makes a push back towards its all-time highs again. Industrials is another candidate to see come out of its bull flag pattern today as is Financials. 

My Market Sentiment

So far this week, the market has done little to improve upon last week’s gains, instead choosing to consolidate. So far, the consolidation has been healthy and under control. I expect at this point, we have a better chance at continuing the rally going into next week, rather than going back down. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 20% Long.

Recent Stock Trades – See My Past Performance Here.