My Swing Trading Approach

I closed my trades in Micron (MU) for a +0.2% profit and Johnson & Johnson (JNJ) for a +0.1%profit - meager profits to say the least, but the in the case of MU, I avoided a lot of downside as a result. The afternoon fading that is taking place, each day, is making it very difficult to trade with any level of confidence in a stock. I will likely stand to the side today, and see, whether the bulls can bounce the market off the lows, and if so, whether the gains can be sustained into the close. 

Indicators

• Volatility Index (VIX) - VIX managed to somehow drop 3.7% yesterday, despite the market giving back all the day's gains. Good chance we see a bounce in the VIX of some kind, today. 
• T2108 (% of stocks trading above their 40-day moving average): Despite yesterday's selling, it still managed to pull off some gains, bouncing 3.7% to 39%, but well off its +41% reading earlier in the day.  
• Moving averages (SPX): Held the 5 and 10-day moving averages after testing them in the afternoon. 

Sectors to Watch Today

Financials are finally bouncing - don't put too much faith in them though. Energy still a market leader, and its current rally has really amazed me so far. Industrials still an ideal sector to be playing here. Technology has looked primed for a breakout for the past month, but nothing yet. Discretionary looks like a possible correction is unwinding there.

My Market Sentiment

I am very much concerned by the behavior of the market the last few days and its inability to maintain any profits into the afternoon trading session. As a result, it is showing a willingness this morning to break below the rising trend-line off of the June lows. This is certainly not the time to be overly aggressive in one's trading. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 3 Long Positions