My Swing Trading Strategy

I didn’t add any new positions to the portfolio yesterday nor did I subtract from it. The market in its current state is seeing strength in the small caps while neglecting large caps, by and large.  

Indicators

• Volatility Index (VIX) – Gave back nearly all of Tuesday’s gains with a decline of 7%. At this point, the $VIX remains comfortable with not sustaining any multi-day run to the upside, and simply languishes sideways. 
• T2108 (% of stocks trading above their 40-day moving average): A 9% pop yesterday following a strong small cap rally, pushed the indicator back up to 64%. Like the $VIX it doesn’t seem interested in committing to a direction, just languishing sideways for now. 
• Moving averages (SPX): Reclaimed the 5-day moving average at the very end of the session and now trades above all the major moving averages. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Real Estate led the way, and one of the more consistent sectors of late in trending higher. Very little in the way of pullbacks. Technology stormed higher to new all-time highs yesterday. Discretionary poised to do the same in the weeks ahead. Energy had a notable bounce, but needs to really push a bit higher here before its next pullback. Avoid the Financials as they will be kicking off earnings tomorrow – not worth the gamble. 

My Market Sentiment

This market is determined to stay afloat and not allow the bears to tank it going into earnings. Once earnings hit, I do believe the market price action will be largely driven by the earnings reports.

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 40% Long. 

Recent Stock Trades – See My Past Performance Here.