My Swing Trading Strategy

No new trades, I have very little to desire to get heavily long while resistance lurks overhead. Most traders out there do not understand that, and simply assume that the resistance will be broken, and while it attempting to do just that, history has shown that feat to be much harder than it appears. For now, I will patiently wait for that to happen. 

Indicators

• Volatility Index (VIX) – An attempt to bounce off of extreme lows, but failed to hold on to most of its gains. It does however, have a very nice base that has formed on the 30- minute chart. I’ll be interested in seeing if it diverges from market strength today. 
• T2108 (% of stocks trading above their 40-day moving average): Still a bearish divergence,and like the VIX, I’ll be interested in seeing how much strength this indicator shows at the open. 
• Moving averages (SPX): The 5-day moving average broke yesterday for the first time since 10/9. Likely to reclaim it by the open today. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology continues to be the weakest sector out there, and this week’s earnings will be key for it going forward. Real Estate still the strongest sector followed by Utilities. Healthcare and Financials have markedly improved as has Industrials, which is also facing a very important week on the earnings front. 

My Market Sentiment

Still a very strong, headline driven market, with yet another gap higher. Doji candle patterns have been the norm of late, which means, very little difference from the opening print to the closing print during regular trading hours. Until resistance is broken, the risk is elevated in this market (even though it isn’t being reflected in price) and reward is minimal. Break out, and everything changes.

Current Stock Trading Portfolio Balance

• 1 Short Position.

Recent Stock Trades – See My Past Performance Here.