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XOP, GDX breakouts worth paying attention to- Monday Mid-Day Techincal Thoughts

Near-term trend bullish, but overbought and near resistance-  No Demark sells present on most timeframes

Oil stocks and gold/Silver stocks making meaningful technical moves-  Buy XOP, GDX

Emerging markets, China turning up sharply after recent drawdown from mid-June-  Buy EEM, FXI

Good followthrough in XLI, XLV, XLE, XLK,  while XLF bouncing but not much technical progress here-   XLE with upside to 77.50-78,  XLK to 72-72.25-  XLV up to 88-88.50

Monday mid-Day Technical Video-  Focusing on S&P levels of importance, QQQ,  XOP and GDX

https://stme.in/O2JZCKinPW

Gains over the last 4 of 5 days have brought Equities up to areas that could be important based on the structure from late January with SP at 2782 up to 2788, while QQQ has resistance at 178

Bonds have sold off with yields up to 2.85% or a bit more than 1%,  and precious metals are extending gains while Energy, Industrials, and Financials are all up more than 1% today, while the Defensive Utilities and Telecom sector are both down more than 1% and Real Estate lower by 0.75%.   Volume is quite light while Breadth is showing about 2/1 positive gains.  The Dollar has firmed with the Exit of Johnson and Davis, creating more uncertainty about the path of BREXIT, but the interesting developments in recent days are the extent to which Financials and Industrials have attempted to snapback-   (Industirals in better shape than Financials) while Treasury yields have not gained enough ground to think rates should move straight higher, so until/unless rates get over 2.90%.. its still right to think of this as a bounce to buy treasuries for a move down to 2.73-6%

 

S&P challenging important trend from late January

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XOP-   A very constructive move out of XOP today, despite oil being lower while XLE and OIH also making similar, but not as bullish movement this am

While OIH up 2.34%, XOP up a lesser 1.3% and XLE up 1.11%.   XOP stands out as being the most attractive to own technically

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GDX higher but off earlier lows as Dollar has gained ground on GBPUSD pullback on May cabinet resignations.  Good to buy dips for short-term move up to 23.50

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Bounce in US Dollar not meaningful at this time.  Remains trending down and this am’s gains likely lead to selling in days ahead.

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Watch for any break of trend which would change this trend to near-term  bullish, which for now is premature

XLF_  Financials bounce making good technical progress.. yet it’s not able to get back above important resistance, and feel that XLF remains one of the weaker of the sectors and right to use bounces to sell into this and/or consider this a group to avoid

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