My Swing Trading Strategy

Closed out my two short positions early yesterday, and flipped the script and added two long positions to my already existing long position. I may add one additional long position today, depending on how the market performs. 

Indicators

• Volatility Index (VIX) – It surprises me that the VIX isn’t dropping more than it is. Only a 7.6% decline on a 36 point SPX rally seems to be light. Still in a consolidation area over the last four weeks. 
• T2108 (% of stocks trading above their 40-day moving average): A 15% rally that took the indicator back up to 37%, but to be taken serious, needs to see a close above 40%. 
• Moving averages (SPX): Finally broke above the 20-day moving average, while also breaking above the 10-day MA too. Potential test of the 50-day moving average today. Huge if it breaks. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology and Industrials were the big market winners. Energy rallies for a second straight day, but I wouldn’t put any stock in that sector going forward. If this rally continues, I would expect Staples, Telecom, and Utilities to continue its lag vs the rest of the sectors. Financials has a lot of room to still rally. 

My Market Sentiment

A pretty solid rally considering how much the market has rallied since the futures opened up on Sunday night. In all – about a 133 point rally off those lows. Crazy right? If the bulls rally another 56 points today, which I doubt it will, it would actually finish in positive territory for the month. Watch for a test of the 50-day moving average today. A break above would be incredibly bullish. 

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.