My Swing Trading Strategy

Last week was an insanely boring week of trading for me. Only one trade overall – that is a rarity. I did close out some positions that weren’t doing much though, including Harris (HRS) for a +0.6% profit. Much of the slowness was due to holiday light volume and recent low volume seasonality from the past month. I’ll look to get more aggressive today, if the opportunity arises. 

Indicators

  • Volatility Index (VIX) – Gave back all the previous session’s gains and then some, with a 4.1% decline to 12.09. It keeps trying to bounce here, but unable to sustain anything as of  yet. 
  • T2108 (% of stocks trading above their 40-day moving average): Down four straight days and seven of the last nine, makes this a slight but noticeable bearish divergence against the S&P 500.  
  • Moving averages (SPX): Fractionally below the 5-day moving average, while also breaking and holding the 10-day moving average on Friday. 
  • RELATEDPatterns to Profits: Training Course

Sectors to Watch Today

Healthcare is oversold and last time that happened, it didn’t stay oversold for long. However, this has been a toxic sector of late, and with earnings season upon us, it may be best to pass up the bounce play in this sector. To see a full blown sector analysis, check out Friday’s post
patterns to profits email

My Market Sentiment

Four days of consolidation and now the wait is on to see if it breaks out or down below the pattern. Either way, should provide short-term trading direction. Futures are down in the AM, but the tendency of late has been to fade pre-market rallies and buy pre-market dips.  

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 30% Long. 

Recent Stock Trades – See My Past Performance Here.