The S&P500 SPY ETF started trading above the 200d on Tuesday, with futures lifting price action again this morning. In addition, S&P500 SPDR sectors were all higher, with biotech fading a bit towards the latter half of the day. We’ll look for follow through.
SPY Daily
Price action is above all moving averages. RSI is above 50, while MACD remains above its signal line confirming bulls are in control.
We took a position in 05/29/2020 calls at the close yesterday, as we anticipated the noise or news about sanctions against Chinese officials was already discounted by the markets. We’ll look for profits this morning.
Financial and industrial sectors performed exceptionally well on Tuesday. These two groups make up nearly 20% of the S&P.
Banks are trading higher again this morning prior to the opening bell. As a result, we’ll be looking for some trades in this group again today.
Note JPM is in the Top 10 by weighting. This is a favorite stock, so we’ll be very keen to see large trades to confirm our choices in the big banks going forward into the summer months, as banks tend to outperform in the second half of the year.
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Happy Trading,
Vinny
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