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.  
  • RELATEDPatterns 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. 
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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. 
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Current Stock Trading Portfolio Balance

  • 1 Long Positions

Recent Stock Trades – See My Past Performance Here.