My Swing Trading Approach

I’m concerned by this market, and I’m taking a much more cautious tone to my swing-trading. Not against adding new positions, but won’t do so unless the market makes a compelling reason for doing so. 

Indicators

VIX – Rose 5.2% and almost back over 10 again. 

T2108 (% of stocks trading below their 40-day moving average): Down a massive 6.2% Considering that the market hardly moved yesterday, this is a sign that stocks are deteriorating much faster than what the indices would lead you to believe. Only 51% are above the 40-day MA. 

Moving averages (SPX): Holding all the moving averages. Bullish. Tested + held the 5-day moving average. 

RELATED: Patterns to Profits: An Intro Trading Course

Industries to Watch Today

Utilities starting to break out.  Consumer Defensive finally trying to bounce. Technology took a breather, but the chart looks strong still. Industirals resume what looks to be a slow, gradual roll over. Financials are the worst stocks to own right now. Stay away. 

My Market Sentiment

I’m seeing quite a struggle for the market to make any major, meaningful moves higher without some kind of pullback in the short-term. Russell Index is very, very weak, and had a major sell-off yesterday, down 1.2% and looking to test the 50-day moving average. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 4 long positions

Recent Stock Trade Notables:

• Baidu (BIDU): Long at $242.80; sold at 248.29 for a 1% profit.
• Nvida (NVDA): Long at $195.17, sold at $204.88 for a 5% profit.
• Humana (HUM): Long at $248.73, sold at $261.20 for a 5% profit.
• Square (SQ): Long at $32.92, sold at $34.36 for a 4.4% profit. 
• Nvida (NVDA): Long at $198.17, sold at $194.06 for a 2% loss. 
• Lennar Homes (LEN): Long at $56.63, sold at $58.10 for a 2.6% profit. 
• Lam Research (LRCX): Long at $185.23, sold at $192.24 for a 3.8% profit.
• Starbucks (SBUX): Long at $55.59, sold at $54.94 for a 1.1% loss. 
• Illinois Tool Works (ITW): Long at $148.63, sold at $151.23 for a 1.8% profit.
• Nvdia (NVDA): Long at $180.18, sold at $187.38 for a 4% profit. 
• Olin Corp (OLN): Long at $34.37, sold at $36.14 for a 5.2% profit.
• Lowe’s (LOW): Long at $77.97, sold at $81.52 for a 4.6% profit
• IBB: Long at $330.91, sold at $338.25 for a 2.2% profit. 
• Seagate Technologies (STX): Long at $34.35, sold at $33.89 for a 1.3% loss. 
• Wynn Resorts (WYNN): Long at $149.65, sold at $147.14 for a 1.7% loss. 
• Imax Corp (IMAX): Long at $23.03, sold at 22.26 for a 3.3% loss. 
• Marriott International (MAR): Long at $106.26, sold at $108.26 for a 1.9% profit. 
• Alibaba Group (BABA): Long at $170.63, sold at $170.29 for a 5.0% profit. 
• Workday (WDAY): Long at $106.91, sold at $104.90 for a 1.8% loss. 
• Nvdia (NVDA): Long at $170.45, sold at $187.94 for a 10.3% profit. 

See my entire swing-trading past performance here.