On Friday I talked about how strange this market has been, especially for swing traders. In that vein, today did not disappoint. We were expecting either a continuation of the pullback or a light bounce. Instead, to the surprise of most, we got a strong bounce. For the first time in quite some time, breadth was actually decent, with 240 of 500 SPY stocks beat the .78% gain in SPY. I am still not seeing a lot of strong breakouts, but today was still an improvement.
One day does not tell us a lot, especially in this whipsaw market. However, if this type of action continues, it will give us the underlying momentum we need to see a big run once new highs are hit.
I am going to continue to play it safe and take on fewer positions than normal.
This is an excerpt from the Market Speculator Part-Time | Swing Trade Report I published today.