My Swing Trading Strategy

I reduced my long exposure yesterday by closing out two positions, and adding one additional trade to my account. The bears have a similar grip on this market (this week) to what we saw two weeks ago. Nothing major, but certainly  keeping the bulls from pushing price higher. 

Indicators

• Volatility Index (VIX) – Another mild bounce on the VIX – only 2.6%. Expect a higher open again today, but so far, there hasn’t been a lot of panic creeping into the indicator. 
• T2108 (% of stocks trading above their 40-day moving average): This indicator is clearly trying to roll over, but has yet to break the March lows, just yet. A 55% reading, and an 8.2% decline yesterday, makes today an opportunity to confirm the roll over and establish a lower-low. 
• Moving averages (SPX): Closed right on the 5-day moving average at 2824. Today it will open below it, but it all comes down to the closing price action. If it holds into the close, expect a retest of the 2800 level. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy continues to show a lot of strength over the last nine trading sessions and now tests its 200-day moving average, while Technology simply can’t close at new all-time highs – so close though. Financials has to be the most the most disappointing sector there is. Beautiful rally last week, only to give it all back this week. Short the strength in that sector. 

My Market Sentiment

Volume remains putrid, and puts any rally in question. On the intraday front, expect a lot of whiplash, as the market lacks the conviction to hold its gains. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 30% Long.

Recent Stock Trades – See My Past Performance Here.