My Swing Trading Strategy

Another gap down this morning, which obviously doesn’t bode well for a market that has yet to finish in the green this week, and on track to have its work week so far of 2019. I played TQQQ for a day-trade yesterday and a +2.3% profit. On the flip side I was stopped out of a couple other existing trades as well, that had been held overnight. However, on the whole, I’m holding up well to the market sell-off. I don’t want to get short at this juncture, because we are one positive headline away from shooting this market up 40-60 points overnight. 

Indicators

  • Volatility Index (VIX) – Despite the market finishing lower yesterday, the VIX gave up all of its intraday gains, that had gone over 23, and closed 1.6% lower at 19.10. That could be a short-term top for the indicator as we we have seen similar behaviors before, throughout 2019. 
  • T2108 (% of stocks trading above their 40-day moving average): Finished 2.6% lower, but again, managed to finish back above the March lows.  
  • Moving averages (SPX): This 50-day MA keeps getting tapped, but each time it has held it into the close, even yesterday where it dropped decisively below it, intraday. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

No major sector sell-offs yesterday, with the worst coming from Materials that was down 0.7%. Telcom saved itself from a topping pattern with yesterday’s bounce, while Utilities sits on the brink of a major rollover. Industrials still looks solid as it is holding the 50-day moving average and sets up for a higher low here. Same can be said about Financials, Discretionary and Technology. 
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My Market Sentiment

SPX has been down six of the last seven trading sessions, and every day this week. And guess what? It is down yet again this morning. I think there is a good chance we bounce into the weekend and I think there’s also a good chance that Tech leads the way higher today. All speculation, but remember this is a headline driven market, so the big question becomes whether the US and China can resolve their differences. I think we will likely see a solution in the near-term. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 20% Long

Recent Stock Trades – See My Past Performance Here. 

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