Utilities Continue To Show Strength

My Swing Trading Approach

I didn't add any new positions to the portfolio yesterday, but did book profits in Netflix (NFLXfor a +2.2% profit. The market though continues to sell off in the afternoon rendering any morning strength meaningless, which is making it difficult for adding new positions to the portfolio. Until that changes, it makes it difficult to be aggressive in terms of adding significant exposure to the long side. 

Indicators

  • Volatility Index (VIX) - Another flat day for the index, unable to sustain a move in either direction, continues to trend sideways.
  • T2108 (% of stocks trading above their 40-day moving average): No surprise here, as the indicator shows a continued weakening of stocks under the surface, with another 4.5% decline down to 37%, despite the Dow hitting new all-time highs yesterday. 
  • Moving averages (SPX​): Closed above all the major moving averages yesterday, held and tested the 5 and 10-day moving averages. 

Sectors to Watch Today

Utilities continue to show strength, but not doing enough to change the sideways narrative of the sector. Financials down eight straight days - well overdue for a bounce here. Still waiting for that bounce out of Industrials. Profit taking in Healthcare the last two days on heavy volume - some concern there. Technology seeing notable weakness over the last two days, and looks to test its 50-day moving average.  Discretionary in a complete breakdown the last two trading sessions.

My Market Sentiment

The trend-line is shockingly be maintained here, but the indifference and low volume that the market has exhibited of late, won't be enough to do so going forward. A sustained bounce here is absolutely necessary to negate the bearish wedge on the daily chart. 

S&P 500 Technical Analysis

swing trading strategy report 299

Current Stock Trading Portfolio Balance

  • 4 Long Positions

Click here to download my Allocation Spreadsheet.

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