Swing Trading Strategy Report - Wednesday, November 29

My Swing Trading Approach

First and foremost – manage the existing positions in the portfolio. If the opportunity arises to add more long exposure in the portfolio, I will do so, but there is a looming tax vote that could create some turmoil for the market if it doesn’t go according to plan.

Indicators

VIX – Divergence from market action. VIX was up 1.6% yesterday, despite the S&P 500 and Dow each rallying over 1%.

T2108 (% of stocks trading below their 40-day moving average): Huge move yesterday of 13%, sending the indicator up to 58%, and killing the potential rollover tendency it was previously exhibiting.

Moving averages (SPX): Trading above all the moving averages.

Industries to Watch Today

Yesterday’s rally was all about the financials. I suspect, that will be the focal point again today. Industrials also showed a lot of strength, followed by consumer cyclical. Technology was one of the weakest sectors, which explains the discrepancy in the market returns, and issues with overall breadth.

My Market Sentiment

As stated yesterday, I wasn’t expecting any major moves yesterday, but what we ended up with was a major move! Now lets see if there is some follow through to the move yesterday.

S&P 500 Technical Analysis