My Swing Trading Strategy

I booked my gains in ServiceNow (NOW) at $300.54 from $280.67 for a +7.1% profit. I added one additional position yesterday as well, while increasing the stops in other positions and will consider adding another trade today.

Indicators

  • Volatility Index (VIX) – A huge 7.5% decline yesterday, much bigger than I expected to see considering SPX gave up a chunk of its gains. 
  • T2108 (% of stocks trading above their 40-day moving average): Only a 2% move yesterday in this indicator and has consolidated over the last seven trading sessions. However, the rising uptrend off of the May lows remains intact, while a move over 70% seems likely in the near future. 
  • Moving averages (SPX): Reclaimed the 5-day moving average and is now trading above all the major moving averages. 
  • RELATEDPatterns to Profits: Training Course

Sectors to Watch Today

Energy was the market’s big winner by a long shot, doubling the next strongest sector in Technology. Yesterday’s move in the former, shows a clear breakout, but for it to continue it will have to deal with the 200-day moving average that it has struggled with over the course of the last eight months. Telecom continues to show remarkable strength as does Real Estate. Materials are still struggling with its current pullback and putting an end to the selling. I don’t like that sector and won’t trade it right now. Industrials you’d think could pull it together  here, but continues selling for a fourth straight trading session, but the selling has nonetheless been well contained. 
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My Market Sentiment

Pullback to support is possible here, if the morning pre-market strength cannot hold. If that happens, I suspect we’ll see some light volume consolidation going forward, before attempting to push higher again. Watch 3000 on SPX as it has been unable to close above this milestone level just yet.  

S&P 500 Technical Analysis

swing trading strategy report 471

Current Stock Trading Portfolio Balance

  • 40% Long

Recent Stock Trades – See My Past Performance Here.