My Swing Trading Strategy

Two new positions were added yesterday, while continuing to hold on to the existing trades. I’ll entertain adding another today, if yesterday’s momentum can be sustained.  

Indicators

  • Volatility Index (VIX) – Dropped 1.1% down to 12.28, bouncing off the lows in the final hour of trading. I don’t expect big moves to the downside from here.
  • T2108 (% of stocks trading above their 40-day moving average): Breadth was the best I have seen in a long time with the day trading a 3:1 edge for advancing issues. On the T2108, a big spike of 13.4% to 64%. 
  • Moving averages (SPX): Price is trading above all the major moving averages now. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Heathcare had a much needed bounce of 1.7% yesterday and helped the rally sustain its gains. Five sectors matched or beat the market yesterday. Technology also soared to new all-time highs as did Discretionary for the first time since the Q4 sell-off. Energy, Materials and Telcom didn’t see any action. 
patterns to profits email

My Market Sentiment

SPX improved its volume levels from the ridiculously low volume levels the day before. Huge breakout of the five-day trading range. Look for a test of the all-time highs today.  

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 50% Long. 

Recent Stock Trades – See My Past Performance Here. 

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