My Swing Trading Strategy

Alright, alright, alright. I closed out my position in SPXU, which again is a 3:1 inverse return of SPX, yesterday for a +3.5% profit. Not bad, but I thought I might come away with a little more than I did. Good thing I closed it though because the market is gapping higher, and I would have lost my profits on the trade, if I hadn’t. With that said, hard to gauge which direction I will ultimately be trading. Perhaps it is a gap and crap kinda day, or a gap and run. Hard to say, I will have to watch the price action early on and decide for myself. 

Indicators

  • Volatility Index (VIX) – Down 4% yesterday, which doesn’t seem like much but well off of its intraday highs of 23.16. Should see some further downside again today with the strength in equities this morning. Needs to ultimately hold 16.82.  
  • T2108 (% of stocks trading above their 40-day moving average): A 5% rally yesterday and may be ready for a bounce as a likely pop in bond yields today should help goose the market higher today. 
  • Moving averages (SPX): Back below the 5 and 10-day moving averages. Setting up well for a test of the 200-day moving average at 2795. Worth noting that the Dow Jones Industrial Average broke its 200-day moving average yesterday. The 5-day and 10-day moving averages could be in play today, and start watching the 150-day MA, as that has been an area that the market continues to consolidate around and bounce from. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

The safety stocks like Utilities, Staples, Telecom and Real Estate saw all the market strength yesterday. See the full sector analysis I did by clicking here. 
patterns to profits training course

My Market Sentiment

The market is certainly gapping higher this morning, but really lacks a lot of gusto in doing so. The volume doesn’t ‘appear to be there, and a good chance we see the strength fade throughout the day. However, bond yields have been quite depressed these last two weeks, so a bounce there could certainly lift the prices of equities as well. Short-term support over the last two  weeks have held strong for the market so keep an eye on that as well. 

S&P 500 Technical Analysis

swing trading strategy report 497

Current Stock Trading Portfolio Balance

  • 100% Cash 

Recent Stock Trades – See My Past Performance Here. 

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