My Swing Trading Strategy

I tried to play the market bounce yesterday. I took about at 1% profit in HES, followed by a small profit in UPRO, however, by the end of the day, I had flipped to the bear side and added SPXU which sets up to have a nice day today. There are two long positions to deal with still, which I will tighten existing stops on. 

Indicators

  • Volatility Index (VIX) – Dropped 12% yesterday, but not enough to make people think that it was ready to make a dramatic move lower. Instead, it is likely to test 20 yet again today. 
  • T2108 (% of stocks trading above their 40-day moving average): Breadth was good yesterday, and a 15% move in this indicator, sent it back above 41%. However, still very bearish at this point. 
  • Moving averages (SPX): Rejected at the 5-day moving average, and looks more inclined to retest the 200-day moving average. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Not surprising that Utilities took a break yesterday following two strong days of gains. All of your growth sectors, particularly Technology, Discretionary, Financials and Industrials had inside days, so even though there was a bounce, the bounce itself was minimal. 
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My Market Sentiment

Yesterday’s rally did little to change the current market sentiment surrounding this market. The end of day selling, made the rally overall feel and look like a textbook dead cat bounce. 

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 20% Long, 10% Short

Recent Stock Trades – See My Past Performance Here. 

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