My Swing Trading Strategy
I reduced my exposure to the long side yesterday following a topsy-turvy trading session. I will look to add 1-2 new long positions today. No interest in shorting the market here as the market has not given me any real volume levels to work with to the downside.
Indicators
- Volatility Index (VIX) – Crazy session that saw the VIX vanquish a a really strong session in the green, only to turn red by the end of day. Still looks like it wants to move towards to the 12’s.
- T2108 (% of stocks trading above their 40-day moving average): Small caps continue to rock, and it is pushing the T2108 up to 52% and hitting some overhead resistance off of the February highs.
- Moving averages (SPX): Tested and held the 5-day MA. Price is currently trading above all major moving averages.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Materials and Energy continue to rock and push the market higher. Financials still in non-stop rally mode. Utilities finally starting to bottom out here and bounce. Technology found support at the box breakout level.
My Market Sentiment
A very strange and interesting trading session on every front. The bulls rallied the market from a significant sell-off and managed to close green. Breadth indicates there is a lot of rotation playing out in this market right now, as there is a strong interest in small caps over large caps. Financials and Energy continue to propel the market higher.
Current Stock Trading Portfolio Balance
- 1 Long Positions