My Swing Trading Strategy
No new trades yesterday. Market was weak, and provided little-to-no trading opportunities. Considering how the market does with resistance overhead, I’ll consider adding a long position to the portfolio. Otherwise, if the market fades quickly following the opening bell, it may be reason to stay put, once again, and or add short exposure, as the market will be signaling its struggles with pushing through its all-time highs.
Indicators
- Volatility Index (VIX) – Market lower yesterday, but (except for Russell), and the VIX only squeezed out a marginal gain of 1%. Still, this is the area of the VIX between 11.5 and 13.50 where the it tends to see its biggest bounces.
- T2108 (% of stocks trading above their 40-day moving average): Breadth held up quite well, actually positive on NYSE, T2108 saw barely any decline. Remains at 54% – barely anything to speak of.
- Moving averages (SPX): Price is currently trading above all the major moving averages.
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Sectors to Watch Today
While the overall market was down, it was in large part due to weakness in Energy and Technology. Stocks with the software industry are showing the most weakness after yesterday’s big sell-off, and oil continues to give up its daily gains and as a result wreck havoc on energy stocks. Materials has been trading in a tight range over the last three sessions and could see a big break as a result in either direction.
My Market Sentiment
Very close to a break through near term resistance, but the problem for more than a year has been the difficulty of this market to sustain any substantial move near the all-time highs. Brexit news this morning could very well change that, but more than likely that news has probably been largely priced into stocks.
Current Stock Trading Portfolio Balance
- 1 Short Position.
