My Swing Trading Strategy

I’m light on equities and heavy in cash. I don’t mind deploying some capital today, but I need to see more out of this market in terms of conviction. So far this week, the market appears unsure of where it wants to go. 

Indicators

• Volatility Index (VIX) – Another large sell-off on the VIX as it continued with its second huge candle to the downside. This time, over 10% decline taking it back down to 14.68. Any significant rally today, should see a move back into the 13’s.  
• T2108 (% of stocks trading above their 40-day moving average): Still a very bearish chart, with the recent lower-low established on Friday. Rallied 13% yesterday but it only took it back up to 50%.  
• Moving averages (SPX): Broke back above the 20-day moving average but unable to hold the break of the 5 and 10-day moving averages into the close. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Real Estate breaking out and continues to remain very strong and at all-time highs. Staples, in a very similar fashion, looks poised to make a move towards its all-time highs established in April of last year. Utilities remain the strongest sector in the market right now. Technology struggling to find its footing over the last three days, as it lagged the overall market price action yesterday. 

My Market Sentiment

A lot of chop in the market yesterday, after fading the huge gap higher. However, end-of-day window dressing, created simply another doji trading candle on SPY. The market is showing a lot of indecision of late, and trading light this market is certainly the way to go… for now. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 10% Short. 

Recent Stock Trades – See My Past Performance Here.