My Swing Trading Strategy

I booked profits yesterday afternoon in Shopify (SHOP) for a +9.1% profit. It was a trade that I had been riding since last Friday. I still have two other positions, but may be cautious about adding another long setup to the portfolio ahead of the Fed’s Jackson Hole meeting tomorrow morning. 

Indicators

  • Volatility Index (VIX) – The lowest closing reading yesterday for the month of August following a 9.7% decline that took the index down to 15.8. 
  • T2108 (% of stocks trading above their 40-day moving average): A 9% increase in the indicator, but still under 40%, which is surprising considering how close price is to all-time highs. Considering SPX is only about 100 points away from fresh all-time highs, individual stocks aren’t rallying as hard as the price action would suggest on SPX for the past five trading sessions. 
  • Moving averages (SPX): Still not able to break through that 20-day moving average, but the 5-day MA is about to cross back above the 10-day MA. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology and Energy were tied for the market leaders yesterday and paced the market higher. The former is facing resistance today with the 20 and 50-day moving averages. While the latter had a nice bounce yesterday, the daily chart still remains very bearish and worth staying away from for the time being. Utilities rallied in a big way, and poised to challenge for new all-time highs on a breakout. Declining trend-line on Healthcare off of the July highs could see a break today. Telecom emerging out of its base very well with support at the 200-day moving average. Financials continues to struggle on the daily as well as does Materials. 
patterns to profits training course

My Market Sentiment

Price action on SPX remains fixed in a three week consolidation pattern as shown in the green box below. The 20-day moving average remains a challenge for the bulls to push through, and with the Jackson Hole meeting tomorrow, price action can go either way at this point. A lot of headline risk with that event that can send price sharply higher or lower, depending on what is said. Personally, I think this market could be setting up for a nasty rug pull tomorrow. 

swing trading strategy report 501

Current Stock Trading Portfolio Balance

  • 2 Long Positions. 

Recent Stock Trades – See My Past Performance Here. 

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind