Technology Lagged The Market Considerably

My Swing Trading Approach

I have been a little more conservative with my approach here. I have plenty of swing-trades in the portfolio - all with profits, but am somewhat hesitant to add more to the portfolio with as overbought as this market currently is. Not that I won't going forward, but it needs to be a really solid, low risk/high-reward opportunity. I don't want to risk a chunk of my recent profits on any new trades, so it needs to be a minimal risk play. 

Indicators

  • VIX - Down five of the six past trading sessions. Due for a bounce as it has reached its lowest reading since January 26th, and back below 12. 
  • T2108 (% of stocks trading below their 40-day moving average): Showing signs of life following yesterday's market rally. Popped 4% to get back to 68%. Not as high as I would like to see, but still a solid reading. 
  • Moving averages (SPX): Trading above all the major moving averages. 

Industries to Watch Today

Financials showed up yesterday, but the sector still looks like a mess, and don't have any intentions of playing it yet. Materials making a huge move and looks like it wants to test its all-time highs again. Energy still struggling to find its footing the last two weeks. Technology lagged the market considerably, and if that continues into today, that could be a red flag for the current rally. 

My Market Sentiment

Yesterday was a pleasant surprise with decent volume and a significant move higher to confirm the bullish breakout from Monday. A test of the March highs seem all but certain at this point. The market is overbought here, but that can be sustained for days at a time before seeing the profit taking. 

S&P 500 Technical Analysis

swing trading strategy report 217

Current Stock Trading Portfolio Balance

  • 6 Long Positions

Click here to download my Allocation Spreadsheet. 

Get ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.