The S&P 500 SPY ETF moved back above the 21d and 9ema on Tuesday. This short post highlights a change of character (SPY) and a reason to “begin” more aggressive trading. We will ease back into swings as price action moves back to all-time highs.
Summary
Use this 21d strategy to increase your winning trades percentage. Consistency will follow. I promise.
SPY 21d Moving Average
Confirmation, when bullish trader’s returned, was pretty evident yesterday as BLOCK size also rose. The markets closed near the high of the day. Buyers were present for the entire session. As a result, this bullish surge lifted the SPY back above its bullish 21d and 9ema.
Above the 21d we’re bullish; below we are cautious/bearish short-term.
RSI is back above 50 and rising. And, reiterating our thoughts from the weekend video, we were looking for MACD to turn higher as it did back in September, October of 2019.
SPY and the SPDR Sectors
The S&P 500 sectors saw technology make new highs on Tuesday. Additional bullish sectors are noted. We’ll focus on these few this morning, while we wait for lagging sectors like materials to catch up.
Note: Scott Redler also commented on technology this morning via his morning Periscope commentary. With more traders looking at the same charts, we can say these stocks are in play. This will show up as elevated RVOL.
As the markets trade a bit more aggressive and bullish this morning, these stocks from the Bollinger Band TTM Squeeze scan should outperform.
| SYMBOL | NAME | SECTOR | INDUSTRY | CLOSE | % CHG |
|---|---|---|---|---|---|
| ENPH | ENPH – Enphase Energy Inc. | Energy | Renewable Energy Equipment | 36.90 | 12.09 |
| MTEM | MTEM – Molecular Templates, Inc. | Health Care | Biotechnology | 16.34 | 7.29 |
| SPLK | SPLK – Splunk Inc. | Technology | Software | 167.81 | 4.96 |
| CDAY | CDAY – Ceridian HCM Holding, Inc. | Technology | Software | 77.89 | 3.78 |
| ERI | ERI – Eldorado Resorts, Inc. | Discretionary | Gambling | 62.70 | 2.96 |
| LDOS | LDOS – Leidos Holdings, Inc. | Technology | Computer Services | 105.31 | 2.78 |
| CTVA | CTVA – Corteva Inc. | Materials | Specialty Chemicals | 30.95 | 2.76 |
| ARNA | ARNA – Arena Pharmaceuticals | Health Care | Biotechnology | 48.71 | 2.70 |
| GDS | GDS – GDS Holdings Ltd. | Technology | Computer Services | 54.72 | 2.63 |
| AXSM | AXSM – Axsome Therapeutics, Inc. | Health Care | Biotechnology | 96.31 | 2.60 |
| CIEN | CIEN – CIENA Corp. | Technology | Telecom Equipment | 42.87 | 2.49 |
| H | H – Hyatt Hotels Corp. | Discretionary | Hotels | 88.03 | 2.42 |
| BILI | BILI – Bilibili, Inc. | Communication Services | Internet | 23.58 | 2.34 |
| ACN | ACN – Accenture Ltd. | Technology | Software | 212.53 | 2.28 |
| CBRE | CBRE – CBRE Group, Inc. | Real Estate | Real Estate Services | 63.43 | 2.27 |
| ARES | ARES – Ares Management, LP | Financial | Specialty Finance | 38.11 | 2.14 |
| CBSH | CBSH – Commerce Bancshares, Inc. | Financial | Banks | 69.98 | 1.89 |
| WDC | WDC – Western Digital Corp. | Technology | Computer Hardware | 68.43 | 1.77 |
| IR | IR – Ingersoll-Rand Plc | Industrial | Industrial Machinery | 138.53 | 1.72 |
| AES | AES – AES Corp. | Utilities | Conventional Electricity | 20.61 | 1.48 |
| CZR | CZR – Caesars Entertainment Corp. | Discretionary | Gambling | 13.96 | 1.01 |
| VRNT | VRNT – Verint Systems, Inc. | Technology | Software | 59.07 | 0.85 |
| LULU | LULU – Lululemon Athletica Inc. | Discretionary | Clothing & Accessories | 247.99 | 0.66 |
| PGX | PGX – Invesco Preferred ETF | 15.16 | 0.26 | ||
| PGF | PGF – Invesco Financial Preferred ETF | 19.02 | 0.05 | ||
| ZAYO | ZAYO – Zayo Group Holdings, Inc. | Technology | Telecom Equipment | 34.87 | 0.03 |
Most of these candidates should follow through today. Look for flags and dips to buy.
ENPH is one example, where candidates in the list exhibit Bollinger Bands breaking out of their Keltner Channels, triggering a TTM Squeeze signal.
ENPH, like the others, also shows MACD in a bullish cross. Volume was above average, printing “pocket pivots.” Finally, ENPH is printing a cup and handle continuation pattern, with the depth of the cup as the measured move, 16 points (+/-). Add this value to the breakout.
S&P Futures are higher this morning. Again.
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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.