Market Outlook:
Go through my sector ETF watchlist – I’ll do it with you in today’s review – and you’ll see something remarkable.
Tech (and some energy) is literally propping up the S&P and QQQ, while nearly everything else is sliding.
We can see it in the Medium-Term Timer. We can see it in the Short-Term Timer. We can see it in the OVI for the indices.
That shows you how concentrated the market is with these two sectors. Otherwise, this market is fragile. Which is why you keep seeing even the most liquid stocks gapping up and down.
But make no mistake, without the tech and energy giants, this market is sliding.
We saw it with IWM, which I’ve signposted for you several times over the last three weeks. Deep ITM puts are up 42% on the IWM’s 4.5% slide.
Consider that for a moment.
Like last week, the semiconductors look like they want to bounce, but it was the crypto brigade that saved the market this week.
So quickly it was almost impossible to catch a ride, unless you’d spotted it – like some members did – a few weeks ago.
Market Timers:
Longer Term Market Timer (OVIsi):
Green.Medium Term Swing Timer:
Bearish.The Main Indices OVIs:
Mainly negative.
Stock Selection:
The first point of order was to review the Sector ETFs. It can often give much needed clarity.
Then my static watchlists, and then my TradeFinder Fast Filters.
Last week we correctly highlighted semiconductors like AMD (belatedly) and INTC, and it looks like there will be more to come from that sector, while energy looks overcooked.
Indices, sectors, setups. That’s the order, and it only takes a few minutes.
Comments
Log in or sign up to join the conversation.