My Swing Trading Approach

It was a second straight day for me, where I didn’t add any new positions to the portfolio. Dip buying still kickin’ strong, but the end of day antics of selling off is what causes the most havoc on most days. Either getting in early or buying right at the close is really the only times to stage entries in this market. 

Indicators

• Volatility Index (VIX) – Traded slightly lower yesterday and maintaining a sub-15 reading. If the current rally holds up over the coming weeks, we could see a bigger push into the 12’s at some point. 
• T2108 (% of stocks trading above their 40-day moving average): An 88% reading is the highest since September of 2009, as the market came out of the Great Recession. It managed to hold these levels for a couple of months before pulling back for about four weeks. 
• Moving averages (SPX): Currently trading above all the major moving averages. 
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Sectors to Watch Today

Materials stole the show yesterday, while Energy came in right behind. The latter of which has managed to string together its sixth straight day of gains. Utilities continues to run hot, establishing new all-time highs. Technology put in its seventh straight day of gains and sits very close to all-time highs of its own. 

My Market Sentiment

Nice push higher yesterday by a large number of your tech stocks, which was a good sign for the continuation of this current market rally. I’m not expecting major moves higher, but more in line with 5-10 point moves on SPX. Still, I always remain on guard for when the rally does stop, to have the stops tight and ready to get out. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 40% Long.

Recent Stock Trades – See My Past Performance Here.