Friday Technical Video- SPX, NQ, XLF, XLU, PM discussed
TECHNICAL LONGS I like given today’s movement specifically: PM ( I own), HSY, CPB, CL, SJM.. SVM, AG, NEP, ES..
Technical shorts- MHK, GM, WHR, LVS, WYNN
Very uninspiring market to say the least.. Mild rally attempt but Industrials down.. and Tech unchanged.. IT’s been all the Defensives.. which have ruled all week- Utilities, Staples, REITS. We’ve seen XLU breakout of its triangle today. While Staples continuing to outperform Discretionary. A very defensive theme
Financials “Positive” is a bit misleading in S&P 500 financials index and XLF.. as KRE is down 1%.. and KBE lower by 0.50%. Treasury yields have backed down and nearly given up the entire breakout from 2 days ago.. so the week is largely unchanged for Treasuries and doesn’t give much confidence for the Financial trade.. XLF still below downtrend from January while XLI has also struggled.- MOVEMENT ABOVE 28.35 in XLF and above 76.98 in XLI would be a positive.. for now.. these sectors remain under pressure
BOTTOM LINE- Despite relative weakening in Tech and FANG names. S&P has not rolled over.. and still important to see a move back down UNDER 2824 even in the short run.. with under 2798 being problematic.
NASDAQ has stalled out and underperformed S&P since June.. and FANG index vulnerable. Yet for now the Sector rotation has helped to save the day and hold stocks afloat.
SHARP Rally yesterday failed to backtrack. Still grinding higher.. though key sectors not really participating. Breadth is barely positive today. For now, doesn’t seem at levels to short into the close. Well have to let this play out. But the movement without any breadth while Defensive stocks are all leading is a concern given the structure. First warning sign for S&P FUTURES is 2824.. so 13 handles down.
XLU broke out of its triangle today- Not as sexy as AAPL and FB.. but it looks better technically right here.
Additional gains for the Utilities. I would favor the Multi-s such as NEP and ES.
SILVER bottoming? Silver futures with daily DEMARK buys.. starting to show evidence of trying to turn higher.
We’ll see, this whole Precious metals space has been a difficult area. Sentiment is very negative on metals while seasonality is kicking in
Some mild evidence of this trying to bottom. And would begin to chip away at buying dips.. looking to add on confirmation of this turning up
SLV and AGQ are interesting. Gold miners still look a bit early
NYSE FANG index- Equal dollar weight of AAPL, GOOGL, AMZN, TSLA, NVDA, FB, NFLX, BABA, BIDU, TWTR
See the June peak, and selloff and failed rally attempts. A much different picture than when hearing about AAPL 1 trillion market cap as this hits 207
Volume heavier on declines.. and momentum sloped negative. Have to be VERY selective on what to own here.