Katie Stockton Talking Technicals
- Posted by JC Parets
- on May 17th, 2011
Katie is a technician that I respect very much. She is the Chief Market Technician for MKM Partners and is very much involved with the Market Technicians Association. She thinks that the Pullback is maturing and is looking for buying oppurtuinities in some oversold stocks.
Last week we saw a spike in the CBOE Put/Call equity ratio suggesting that sentiment is not too complacent and really its greed that characterizes market tops. Her target for the S&P500 is about 1420-1440 and the path of least resistance is higher. Not to say that we can’t see another correction before we get there but as of right now the market looks higher over the next several weeks at a minimum.
Investors should be seeking out those oversold names (25% of S&P500 is oversold) and looking at sectors of the market that are oversold on a relative basis, so that would be more the cyclical areas of the market as opposed to some of the more defensive areas like the healthcare sector, utilities, and staples that are overextended. XLV, the Healthcare Sector ETF, is overextended and showing resistance left over from the 2007 highs still remains in a long term downtrend relative to the S&P500
She thinks the Risk/reward is pretty favorable at least for the next couple of weeks. Katie expects a new recovery high for the S&P500 before a more significant correction so we should be buying stocks that are oversold and prefers the Industrial and Consumer Discretionary Sectors.
Talking Numbers: Buying Opportunities for Investors (MSNBC Video)
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
- Energy Looks Intriguing On A Relative Basis
- The 10% & 20% Correction Levels Are Completely Irrelevant
- TIPS Are Greatly Appreciated
- Russia Fails At Former Support
- I love Big Bases And You Should Too
- The Trend Channel Everyone Is Watching
- Why Gold Is About To Rally 200 Points
- MTA Symposium 2014
- I Promise, You Will Be Wrong
- The US Dollar Index Is Perfectly Priced
Archive by Year