My Swing Trading Strategy

No new positions for me yesterday. Call me crazy, but I’m not going to load up on long positions when there is zero rhyme or reason behind these market gyrations. For Pete’s sake, the market is falling on whether or not the Chinese delegation ordered ham & cheese or just soup and salad during their visit to the White House. I closed out my one short position, for a loss of course, and am sitting comfortably in 100% cash. 

Indicators

• Volatility Index (VIX) – Surprisingly enough, it isn’t dropping all that much with these market rallies. Still elevated and at 17.57. 
• T2108 (% of stocks trading above their 40-day moving average): A 13% rally taking the indicator back up to 42%, but well off the recent highs. 
• Moving averages (SPX) Broke back above the 5, 10, and 50-day moving averages. These particular MA’s have come to mean very little in terms of support/resistance, slicing through them at will. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology barely participated in yesterday’s rally which was surprising. Instead it was all about the Materials and Energy leading the way, with the latter being one, I don’t prefer to touch. Despite a hard rally, there was very little interest in buying up Discretionary stocks as companies like Amazon (AMZN) actually finished lower on the day. 

My Market Sentiment

The unpredictable nature of this market of late has made for a difficult time for traders. SPX has a shot here of closing out the week higher than where it started, but the 2:45pm EST trade talks between the US and China creates a possible scenario of the market possibly tanking if an agreement can’t be reached.

Current Stock Trading Portfolio Balance

• 100% cash

Recent Stock Trades – See My Past Performance Here.