My Swing Trading Strategy

I didn’t increase my overall exposure in the market yesterday, as I sold my position in Boeing (BA) for a small loss, after it simply refused to bounce. This morning, I will watch overall market action to see if the bulls are able too bounce off the overnight lows. Regardless, I will be raising my stops as much as possible to protect profits. 

Indicators

• Volatility Index (VIX) – Despite a +30 point move in SPX yesterday, the VIX didn’t give up much ground with only a 2% decline. Expect to see an increase in volatility today.  
• T2108 (% of stocks trading above their 40-day moving average): A strong rally yesterday shot the indicator up 12% to 62%. A very good and much need move to avoid a confirmed breakdown on the chart. 
• Moving averages (SPX): Held the 5-day moving average and now trading above all other major moving averages.  
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology established new all-time highs yesterday and re-established itself as the market leader. Real Estate continues to come on strong as well. Financials should be avoided at all costs – in particular the banks – as they are running hard against the market. Don’t trust their bounces either.  

My Market Sentiment

SPX  bounced off of support yesterday, following two days of declines. However, there’s plenty of weakness heading into the open today, and holding onto a large portion of the previous day’s rally will be essential to keeping the market momentum intact. A reversal that takes price back below key support would  certainly be bearish going forward.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 30% Long.

Recent Stock Trades – See My Past Performance Here.