My Swing Trading Strategy

I tried to day-trade the bounce yesterday, but there was little juice in the market ahead of the three day weekend. I added one additional swing-trade that I held over the weekend, and will look to add 1-2 more today if this market can hold up for the bulls. 

Indicators

• Volatility Index (VIX) – Dropped 6.3% on Friday, but managed to keep itself inside of the trading range of the last seven sessions. Market volume hasn’t been all the overwhelmingly strong during the sell-off in May, which has probably led to the VIX staying suppressed during that time. 
• T2108 (% of stocks trading above their 40-day moving average): A 7% pop but still in the mid-30’s and no technical improvements from the bearish downtrend that still remains in place. 
• Moving averages (SPX): Rejected on Friday at the 5 and 10-day moving averages. The latter continues to be a thorn in the side of SPX price action, as it cannot sustain a move above it for the better part of a month. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Financials led the market on Friday, and trying to establish a basing pattern to launch from. Materials rallied as well, but the overall price action is extremely dismal. Energy has been torn apart of late and should be avoided for now. Technology has to bounce here or risk breaking a significant support level. 

My Market Sentiment

Strong open for the market on Friday, but could not hold it into the close, giving up much of the day’s gains. The only bright spot for the bulls, was that the market didn’t finish lower, but nearly all of its gains were wiped out. Still holding key support as shown in the chart below, and that will again be the key area for the market going forward. I suspect we will see an end of month bounce, to pair some of the losses. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 10% Long 

Recent Stock Trades – See My Past Performance Here.