Our post will be short this morning, with some quick thoughts on NDX, SPY, and IWM before the opening bell. Futures are modestly lower (-9pts) on what appears to be a rotation out of technology into industrials and healthcare stocks.
Sector strength is beginning to emerge in the industrial, financial, and energy stocks. Technology sector stocks are weakening a bit as most are at 52-week highs. That said, earnings have been better than most “experts” anticipated. It’s this unexpected strength that suggests stocks are in rotation mode, not selloff mode.
The key to short-term sentiment is the 9/21d moving averages. SPY tested the 9ema on Thursday. This is a caution signal. A close below would be a reason for “us” to start hedging. Gold, silver, bonds, and puts would be our choice, with additional hedges in SPXU, SQQQ, and maybe SDOW.
Also, note the major VBP bars on the left side of the chart. That is support.
A close below the 21d would be a reason to get more aggressive short-term. August is one of the weakest months of the year, so this one could be another to add to the history books.
MACD would need to roll over and RSI would need to trend below 50 to confirm a short-term bearish bias.
Running behind schedule this morning with all the activity these past few days. We’re selling our house in New Jersey and moving to be near family “in-laws.” Have several offers above asking price so wish us luck.
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.
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.
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 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.