Rally Trajectory Changed

My Swing Trading Approach

One additional long position was added to my portfolio yesterday while taking a 0.7% loss on Eastman Chemicals (EMN). I am open to adding another position today, but I need to see a little more out of my existing positions first. 

Indicators

  • Volatility Index (VIX) - Broke through the 20-day moving average momentarily, which hasn't really been done at all, of late. But by the close, all the gains, plus an extra 3% was subtracted from the final tally. Closed at 14.70. 
  • T2108 (% of stocks trading above their 40-day moving average): A little bit of a rollover here on the T2108, as the indicator shed another 2.3% yesterday, to take it to 80%. There's no panic seen, just appears to be a natural pullback for the market as it consolidates a two-month rally. 
  • Moving averages (SPX): Currently trading above all the major moving averages.

Sectors to Watch Today

Financials still appears ready to push higher here, and Energy remains in the bull flag pattern. Technology had a significant dip and bounce to finish the day in positive territory. Utilities on a 3-day pullback, but that too, looks like a low volume bull flag to watch. 

My Market Sentiment

The rising trend-line off of December lows was broken. I don't think this is cause to sound the alarm. I think more importantly it may just be that the trajectory of the current rally has changed in terms of steepness. Potential for further weakness to result in a re-test of the 200-day moving average. 

S&P 500 Technical Analysis

(Click on image to enlarge)

swing trading strategy report 386

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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