My Swing Trading Strategy

I added one new long position yesterday, and will look to add more today if the market decides it can break and sustain a breakout of the bull flag popping up across all the indices. I’m still interested in looking for situation specific short setups as I have done throughout the course of this month. 

Indicators

• Volatility Index (VIX) – While the VIX popped over 5%, it gave up the majority of its gains throughout the course of the day. Price action remains compressed and traders are still shorting the pops. 
• T2108 (% of stocks trading above their 40-day moving average): Fell for a fifth straight day, and now looking at a reading of 57%. Despite the market being at all time highs, almost half of all stocks are trading below their 40-day moving average. A very undesirable reading. 
• Moving averages (SPX): Trading above all major moving averages.  
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Sectors to Watch Today

While Energy has been a major market leader of late, investors are showing that it is still on shaky ground as it continues to see big moves in both directions. Technology however has shown little weakness on the down days, while much stronger on the bullish days. Even though the market finished lower yesterday, traders still avoided jumping into Utilities as it continues to sell off in a big way. 

My Market Sentiment

Bull flag pattern forming across all the indices. The price range over the past six days have been quite muted and tight. Ultimately this should lead to a larger move. Likely to the upside.

• 1 Long Position.

Recent Stock Trades – See My Past Performance Here.