Low Volume Plagues The Market

My Swing Trading Strategy

I added one new position yesterday and kept the other two current positions in the portfolio. I'm not seeing any definitive direction from the market over the last two weeks, and will likely park here unless the market can show a burst of momentum in one direction or the other. 

Indicators

  • Volatility Index (VIX) - Another attempt at a break of the 20-day moving average, resulted in another a late day sell-off on the indicator. 
  • T2108 (% of stocks trading above their 40-day moving average): Yet another 4% drop, taking the indicator to 71%. Clearly, some profit taking over the last two weeks is taking place in the market as a whole. 
  • Moving averages (SPX): A break of the 5 and 10-day moving averages. Easily recoverable, but will need to rally today in order to do so. First time closing below the 10-day moving average since January 3rd. 

Sectors to Watch Today

The market was a mixed bag yesterday, with most of the strength coming from the defensive plays like Staples and Real Estate. Telecom continues its minor rollover, as does Materials. Most of your other sectors continue coiling at the recent highs and show the potential for a bull flag breakout. 

My Market Sentiment

Still holding on to the rising uptrend from the beginning of February, but needs to break through resistance here really soon, or risk a potential rollover again. Low volume continues to plague this market and keeping it from moving with any conviction. 

S&P 500 Technical Analysis

(Click on image to enlarge)

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Current Stock Trading Portfolio Balance

  • 30% Long.

Click here to download my Allocation Spreadsheet. Get all of my trades that I make real-time by jumping in the  more

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