My Swing Trading Approach
Quiet day overall for me yesterday. I added one additional long setup on the morning dip. I’m a little reluctant at this point to add additional long exposure as I am about as long as I want to be under the current circumstances. May look for opportunities to raise some cash at some point today.
Indicators
- Volatility Index (VIX) – Sizable bounce in yesterday’s morning action, but once the afternoon rolled around, it had given most of it up to only close 3.6% higher at 16.22.
- T2108 (% of stocks trading above their 40-day moving average): Flat day, but still sitting at multi-year highs.
- Moving averages (SPX): Broke below the 200-day moving average but reclaimed it after finding support at the 5- and 10-day moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy sector led the way – showing itself to be the strongest of the sectors for this week. The other sectors to watch are Healthcare, Technology and Discretionary. Stay away from Financials.
My Market Sentiment
Very dull and muted price action that only seeks to return and stay at and around its previous day’s closing price. Last three days there has been a pullback from the highs of the day, particularly at the close.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 40% Long.
