My Swing Trading Approach
One additional long position was added to my portfolio yesterday, while taking a 0.7% loss on Eastman Chemicals (EMN). I am open to adding another position today, but I need to see a little more out of my existing positions first.
Indicators
- Volatility Index (VIX) – Broke through the 20-day moving average momentarily, which hasn’t really been done at all, of late. But by the close, all the gains, plus an extra 3% was subtracted from the final tally. Closed at 14.70.
- T2108 (% of stocks trading above their 40-day moving average): A little bit of a rollover here on the T2108, as the indicator shed another 2.3% yesterday, to take it to 80%. There’s no panic seen, just appears to be a natural pullback for the market as it consolidates a two-month rally.
- Moving averages (SPX): Currently trading above all the major moving averages.
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Sectors to Watch Today
Financials still appears ready to push higher here, and Energy remains in the bull flag pattern. Technology had a significant dip and bounce to finish the day in positive territory. Utilities on a 3-day pullback, but that too, looks like a low volume bull flag to watch.
My Market Sentiment
The rising trend-line off of December lows was broken. I don’t think this is cause to sound the alarm. I think more importantly it may just be that the trajectory of the current rally has changed in terms of steepness. Potential for further weakness to result in a re-test of the 200-day moving average.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 30% Long.
