From the Desk of Kimmy Sokoloff
$SPY broke the February 2 highs, and we’re almost at the 421.22 gap-fill.
Maybe we see that level today.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
$SPY broke the February 2 highs, and we’re almost at the 421.22 gap-fill.
Maybe we see that level today.
by David
From the Desk of Kimmy Sokoloff
It was a wild day in the market.
We ran right to resistance on $SPY at 417.50 and moved a tad higher from there.
We came close to the February highs but didn’t quite touch that level.
by Ian Culley
From the Desk of Ian Culley @IanCulley
Tech stocks don’t care about the manufactured debt limit crisis. Nor are they bothered by the increasing probability of a rate hike next month.
Growth stocks seem concerned with only one thing – printing fresh highs.
The Tech sector ETF $XLK posted new 52-week highs yesterday. And the Communications ETF $XLC rallied within reach after taking out its Aug. ‘22 pivot highs.
So where does that leave bonds and other long-duration assets?
If these base breakouts across growth sectors hold, I imagine bonds have some serious catching up to do…
From the Desk of Steve Strazza @Sstrazza
When investing in the stock market, we always want to approach it as “a market of stocks.”
Regardless of the environment, there are always stocks showing leadership and trending higher.
We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.
The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too.
We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.
We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics.
Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.
Now, we’re also highlighting lagging stocks on a recurring basis.
by David
From the Desk of Kimmy Sokoloff
Yesterday we broke out of this sideways channel on $SPY, and this morning the market is gapping up.
We have near-term resistance at 417.50 or so, which was the May 1 high.
by JC
Sector Rotation is the life blood of a bull market.
In the back half of last year, almost everything was working – except for some growth stocks and Tech.
Then came 2023. The best performers have been growth stocks and Tech.
That’s what we mean by “sector rotation”.
Last year they were all bitching about the fact that these Tech stocks and the Nasdaq weren’t working, even through practically everything else was.
This year they’re bitching that these Tech stocks are the only ones working (hint: they’re not the only ones).
Large-cap Tech outperforming does not mean that market breadth is weakening. It just means that Large-cap Tech is outperforming.
This is classic sector rotation – a characteristic regularly found throughout bull markets.
So what comes next? [Read more…]
by David
From the Desk of Kimmy Sokoloff
The market was full speed ahead, again, and we closed a gap above at $SPY 415.27.
SPY held support at 410 like a charm.
[9/7: stop moved to 260. We’re already #FreeRiding on this one. So whatever we sell the remaining position for is pure profit!]
Today’s trade leans against a significant support level that we believe will hold. But because the stock is at such a delicate level where it could quickly collapse on us if the level doesn’t hold, we’re going to keep the play simple and cleanly define our risks.
A picture is worth a thousand words, so here’s the chart of Caterpillar $CAT that’s got our attention: [Read more…]