My Swing Trading Approach
By adding a long position yesterday to the portfolio, it balances out the short position that I am also carrying into the day from last week. I’ll look to aggressively add 1 to 2 new long positions in the early going.
Indicators
- Volatility Index (VIX) – A very dull session for the VIX as it remained just below 16 at 15.97. Inside day yesterday, but expect a drop today.
- T2108 (% of stocks trading above their 40-day moving average): A small rally that took the indicator back up to 81%. Holding strong despite some weakness over the past week.
- Moving averages (SPX): Wedged between the 5- and 10-day moving averages. Expect a break above and a possible challenge of the 200-day moving average today.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Industrials broke back above the 200-day moving average and one of the strongest sectors out there, along with Technology, Utilities, and Staples.
My Market Sentiment
The 200-day moving average is in play, as the market looks to be in rally mode in the early going. Whether it can break through the 200-day MA or not will go along ways in determining the sustainability of this current market rally.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 10% Long, 10% short.