The Closing Print live trading and financial blog during market hours.

Most of the S&P500 SPDR sectors have run into resistance going into monthly options expiration (OPEX). If this weakness persists we’d expect June to produce a path lower into the summer months.

Technology is the largest sector, followed by industrial and financial stocks. Healthcare is also more than 13.4%, so between these 4 SPDR sectors, more than 50% of stocks are affected.

Technology is persistent, rising to resistance this week after testing VBP support weeks earlier. Volume is tapering off as a pivot seems to form.

Click to enlarge

Healthcare looks similar to the technology sector, as far as relative strength, so we’d focus short-term longs in these two groups.

Financial and Industrial stocks haven’t faired as well. These two SPDR sectors ran into resistance over the past six weeks, producing a cascading pattern of late.

Financial Sector

Financials, and specifically banks, are persistently weak. Considering overhead resistance, these stocks have a lot of work cut out for them. Non-performing loans and credit card debt will undoubtedly be a problem for several quarters unless the economy opens soon.

We’d look to short weaker banks with heavy credit exposure.

Transportation Sector

Transportation stocks had pockets of performance, then Warren Buffett sold all of his airline stocks. That sentiment only adds to investor skittishness and sent this industrial sub-sector lower.

Industrial Sector

Once again, resistance is formidable. RSI is below 50, while volume tapers off. At best, we would look for a higher low in the coming weeks for potential opportunities. Barring a bounce this sector is weak.

Click to enlarge

If conditions get any worse, we’ll start scaling out of some long-only funds in our retirement accounts and Coverdell, while hedging the remaining funds.

SPY price action is below the 21d. RSI and MACD are lagging but worrisome. Depending on OPEX this Friday, we’ll make more decisions while keeping members assessed to our positioning into the summer months.

On a side note, our position in CODX is up substantially.

Join us today in the trading room for our LIVESTREAM broadcast

during market hours, as we make decisions on open positions and navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading, 


Want to become a member? Check details here:

Disclaimer:  Do your Own Research

Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.

Investment Warnings

We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

Live Sessions

Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends. 

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.