My Swing Trading Strategy

No new positions added on Friday, as I rode my existing portfolio’s positions higher. That may be the case again today, unless the market can build upon the momentum from Friday, at which point I will look to add another long position. 

Indicators

• Volatility Index (VIX) – Closed at 12.01, following a 7.8% decline and its lowest close since 10/3/18, which was right before the market began the heavy Q4 sell-off.
• T2108 (% of stocks trading above their 40-day moving average): Despite the significant market rally on Friday, T2108 only rose a small about +3%. I would have expected something more in the 7-10% range. The breadth is certainly lagging in the market right now, which means fewer and fewer stocks are propelling this market higher. 
• Moving averages (SPX): Back above the 5-day moving average, as well as all moving averages in general. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials were by far, the strongest sector with the JPMorgan Chase (JPM) earnings rallying the sector and banks as a whole. Industrials are coming back to life as Boeing (BA) is finally managing to attract some bidders in its attempt to sustain a a bounce off of the 200-day moving average. Discretionary has been very strong of late, and continues to march steadily higher, while Technology continues to put in new all-time highs. 

My Market Sentiment

I suspect, especially with it being a holiday week, that today and the rest of the week will be marked by low volume and a tight price range. As a result, managing existing positions should be the first priority, and tempering market expectations should be your next. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 50% Long. 

Recent Stock Trades – See My Past Performance Here.