My Swing Trading Strategy
No new positions added on Friday, as I rode my existing portfolio’s positions higher. That may be the case again today, unless the market can build upon the momentum from Friday, at which point I will look to add another long position.
Indicators
- Volatility Index (VIX) – Closed at 12.01, following a 7.8% decline and its lowest close since 10/3/18, which was right before the market began the heavy Q4 sell-off.
- T2108 (% of stocks trading above their 40-day moving average): Despite the significant market rally on Friday, T2108 only rose a small about +3%. I would have expected something more in the 7-10% range. The breadth is certainly lagging in the market right now, which means fewer and fewer stocks are propelling this market higher.
- Moving averages (SPX): Back above the 5-day moving average, as well as all moving averages in general.
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Sectors to Watch Today
Financials were by far, the strongest sector with the JPMorgan Chase (JPM) earnings rallying the sector and banks as a whole. Industrials are coming back to life as Boeing (BA) is finally managing to attract some bidders in its attempt to sustain a a bounce off of the 200-day moving average. Discretionary has been very strong of late, and continues to march steadily higher, while Technology continues to put in new all-time highs.
My Market Sentiment
I suspect, especially with it being a holiday week, that today and the rest of the week will be marked by low volume and a tight price range. As a result, managing existing positions should be the first priority, and tempering market expectations should be your next.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 50% Long.