My Swing Trading Strategy

I closed out my trades in ROKU at 105.80 for a +15% profit, and TNA at 61.45 for a +18.5% profit. Should the morning strength hold, which definitely has some question marks associated with it, considering how quickly overbought the market has become, I will consider adding 1-2 positions to the portfolio. 

Indicators

• Volatility Index (VIX) – Broke below the 5/22 lows, and likely to go a whole lot lower, into the 13’s or 12’s if today’s pre-market strength holds up. 
• T2108 (% of stocks trading above their 40-day moving average): A 4.2% rally to take it back over the 50% mark. That is huge, and likely to see at least another 10% today. However, there is still a series a lower-highs and lower-lows established going back to the February highs. We are also well below the May highs at this moment despite setting up for new all-time highs on SPX today. 
• Moving averages (SPX): SPX currently trading above all of its major moving averages.
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

It was mainly Defensive stocks like Utilities, Telecom and Real Estate that led the way yesterday, while your growth sectors like Technology and Discretionary were in the middle of the pack. Despite barely finishing in positive territory yesterday, expect Energy stocks to see a major rebound today. 

My Market Sentiment

New all-time highs will be established today, at least on an intraday basis. Where it closes is anyone’s guess. Definitely a lot of overnight short covering, and market chasing as the market is choosing to view Powell’s words as very bullish in anticipation of further rate cuts, which really makes zero sense.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 100% Cash

Recent Stock Trades – See My Past Performance Here.