The Market Continues To Make Its Run-Off Of The May Lows

My Swing Trading Approach

As the market continues to make its run off of the May lows, I am not opposed to adding more positions to the portfolio, but it is more important at this point to be protecting profits, and dramatically increasing existing stop-losses. 

Indicators

  • VIX - Traded higher on Friday, but not unexpected considering how oversold the indicator is. Any downside among stocks is likely to see some exaggerated moves to the upside in the VIX.
  • T2108 (% of stocks trading below their 40-day moving average): Back near the 70% mark. However, despite recent market gains, the indicator hasn't done much in terms of notable increases. 
  • Moving averages (SPX): Tested and held the 5-day moving average for a third straight trading session. Trading above all the major moving averages. 

Industries to Watch Today

Staples with a massive bounce on Friday that allowed for price to breakout of its base. Healthcare with a healthy upward trend mirroring the current price action of the market. Discretionary once again establishing new all-time highs. Inudstrials starting to breakout of its inverse head and shoulders pattern. Financials may be in play this week. Technology as well as Energy continues to lag in recent days. 

My Market Sentiment

The bulls have certainly marched this market into overbought territory, so it remains to be seen whether the momentum can be sustained here or we see a pullback in light of a jam-packed week full of news and headline risk. 

S&P 500 Technical Analysis

swing trading strategy report 219

Current Stock Trading Portfolio Balance

  • 6 Long Positions

Click here to download my Allocation Spreadsheet.

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