My Swing Trading Strategy

I did not add any new positions yesterday as the market’s price action simply didn’t warrant it. Instead I raised my stops where I could. I will be open to adding another long position today, but won’t hold out hope for it, if the market decides to fade tech strength today. 

Indicators

  • Volatility Index (VIX) – A 7% rally in the VIX yesterday, which spent most of the day rising, and now testing that stubborn 20-day moving average. 
  • T2108 (% of stocks trading above their 40-day moving average): Despite breadth on NYSE being quite flat, the T2108 was able to still rise 1% to finish at 65%.
  • Moving averages (SPX): Price is trading above all the major moving averages now. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

The only strength in the market yesterday was Real Estate and Utilities. Technology remained strong, but didn’t add anything to its recent gains yesterday. I suspect with Microsoft (MSFT) and Lam Research (LRCX) rallying on its earnings that it should help to propel the sector higher. 
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My Market Sentiment

There was no follow through yesterday, and the low volume remained. However. the lack of major profit taking and a turn lower, keeps the market in play for additional upside and another attempt to take out the all-time highs.   

S&P 500 Technical Analysis

swing trading strategy report 425

Current Stock Trading Portfolio Balance

  • 50% Long. 

Recent Stock Trades – See My Past Performance Here. 

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