"It's Going to be a Big Week"
And the lower chart shows what potentially could be, if last week was the whipsaw.
I don't know which one it will turn out to be, but I do know that I'll be watching very closely and acting accordingly.
I'll also be right here talking about it, of course.
And here's the other major. Was that breakout in Financials the 'actual' breakout and we just saw the ensuing retest?
Or is the disaster about to start?
I would argue that if both Financials $XLF and, more specifically, the Regional Banks $KRE are below their first half highs, that's a big problem for this market.
Look at some of the laggards that peaked in February (with so many others) and still haven't recovered.
Can these industry groups dig in? Social Media, Online Retailers and Biotech all stopped going up in Q1 and have just deteriorated lower ever since.
They are likely to tell us soon if last week was the final washout or not....
Two that have held up the strongest are two names that we picked out for Options trades last week. Both $LNG and $U are still in play in options and/or the stock itself. How you play it is up to you.
Check out this video for details:
Another area that is holding in strong is Healthcare. Take a look at Pfizer holding up above those highs from over 20 years ago.
I was still in high school the last time Pfizer was up here:
Our target of 73 is still intact here and we still only want to be long if we're above those former highs from JC's high school days!
Energy is another area on our radar.
Even with Crude Oil Futures down double digits last week, both the Energy Sector Index $XLE and the Oil & Gas Exploration & Production Index were positive for the week.
We want to be long Natural Fuel Gas $NFG if it's above 61 with a target near 79, which represents those former highs from 2014.
Another one in the space is Continental Resources $CLR
This one has yet to break out, but it's close:
We want to be long $CLR if it's above 52 with a target near 72, which were those former highs in 2018.
If the stock is below 52 then it's probably still a mess and we want to avoid it.
Also in the Commodities space, look at Live Cattle Futures continuing to rip to new highs:
It looks to me like Feeder Cattle Futures are right behind it.
We want to be long $GF_F if we're above 158 with a target near 192:
Here are some highlights from the Commitment of Traders report:
- Minneapolis Wheat: Commercial hedgers have finally lightened up their shorts, but those contracts remain near record levels.
- Cotton: Commercials added almost 3,000 contracts to an already heavy short position this week.
- US 10-year Treasury Note: Commercial hedgers continue to carry a net long position less than 10% away from its three-year record.
- Coffee: Commercial short positioning is just 2,000 contracts shy of its three-year extreme.
Click here to download our entire Commodities Chartbook. Trust me, take a couple of minutes and flip through this. I promise that you will not be disappointed.
It's that good!
And finally, let's just own strength!
If you want to own the strongest stocks, then buy the strongest stocks!
This is the 2-to-100 Club where we're looking for the next $100B companies. We put them through a list of filters to come up with this list of the hottest, strongest growth stocks.
Here's this week's list:
This Semiconductor has been working for us all year and has now given us a new entry point with a favorable risk vs reward profile.
We want to be long Teradyne $TER if it's above 146.50 with a target of 211:
That's this week's watchlist.
I want to say that this is going to be a big week.
But if you're a trader, don't you say that at the start of every week?
Don't front, you know you do!
Wednesday Night Live Call
At the beginning of every month we take a step back, zoom out and analyze all of the world's primary trends.
This Wednesday night's call is going to be one of the most important calls in a very long time. We have a lot to discuss: Stocks, Gold, Energy, Interest Rates, plus our favorite ways to take advantage of those trends as we head into year end.
I'll be hosting the event live Wednesday December 1st @ 6PM ET.
Premium Members can register here if you haven't already!
And if you have any questions, shoot me an email or give us a call: (323) 421-7991
- JC