Watchlist Stocks and Relative Strength
Futures are lower this morning, so we will be looking for those stocks in the watchlist that exhibit relative strength for longs. For those of you comfortable with shorts, look to the energy sector as the XLE dropped hard on Friday. Consumer staples stocks continue a bullish trend to start the week.
Join us LIVE this morning, as we look at consumer staples stocks before the Opening Bell.
Another strategy is to do nothing. Take a walk this morning and wait for stocks to follow through.
Wait for the Opening Range (9:30 AM – 10:00 AM). Once we are done with the first few minutes of trading imbalances, the market trend will show its bias for the day. Friday ended with buyers stepping up, producing a long shadow on daily candles. If these were merely shorts covering we will know it soon enough.
Watchlist for the Week of 06-18-2018
Give the stock market a few minutes to settle down this morning before starting any new trades. We want the indices working in our favor and the SPDR sectors to give us some insight into institutional activity. We’ll take their cue.
Watch media and entertainment stocks. They should remain strong this week, with mergers and acquisitions in play.
Remember, technology has exhibited strong seasonality in the month of July. We will be watching for another year of tech stocks outperforming in the weeks ahead.
Happy Trading,
Vinny
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