Lots of weakness in many Material stocks.
Material stocks are leading indicators for aspects of our economy.
This pattern trendline breaks and it could signal a massive decline.
Looking into all the major sectors of the S&P 500 to see if this breakout can be trusted.
we review all sectors on a weekly basis to provide insights of the overall market.
Most sectors have not broken out & trading at major resistance.
What is not to like about this chart. 30.08 ROE, low debt ratios, good margins and cash flow. Solid trend on weekly, looking for starter entry around the dashed red line or the top of the cloud (198.69).
The worst may not be over. A 8% inflation is very hard to fight even with monetary & fiscal policy because the FED could only control the demand side & not the supply side of inflation. With the FED making it very clear that it wont stop until inflation comes down, we may be seeing aggressive rate hikes leading to layoffs & demand destruction in the near future &...
X (United States Steel Corporation) stock price has double-topped below $38.57. Bearish momentum (MACD) has down-crossed on a daily time frame.
Entry (short): $37.25
Profit Target +12% (exit): $32.76
Stop Loss -6% (exit): $39.49
Utilize stop loss, profit targets, position sizing, and risk management.
Note: Many stocks and ETFs have already rallied up for the...
Trading plan on chart. Need a break and retest of the $94 area before adding positions. Favoring a corrective wave to add new positions. Earnings season could be the catalyst to spike into an ending diagonal (pointed out on chart).
This could be one of the top sectors for 2021 but I'd like to wait for a pullback to add.
If you get anything from this post please...
Energy (XLE) topped the sector list this week after the OPEC Monthly Report on Monday projected that demand for oil would exceed pre-pandemic levels by next year. The sector also got a boost from Crude Oil Inventories data released on Wednesday that showed much higher demand than expected.
Consumer Discretionary (XLY) moved into second place after great Retail...
SNIPER STRATEGY
This magical strategy works like a clock on almost any charts
Although I have to say it can’t predict pullbacks, so I do not suggest this strategy for leverage trading.
It will not give you the whole wave like any other strategy out there but it will give you huge part of the wave.
The best timeframe for this strategy is Daily, Weekly and Monthly...
XLB etf (materials) is testing a daily supply zone ( drop base drop) offering a great point to entry short with a low risk and high reward profit margin. +5R in this case
Materials (XLB) led the sector list for the week, getting a massive boost on Tuesday and Wednesday after the Infrastructure bill passed the Senate. Industrials (XLI) also got a boost from the bill.
Financials (XLF) contented for the top spot, gaining from rising Treasury yields that positively impact performance for the sector. However, yields dropped on Friday,...
The U.S. Senate voted to advance a $1 trillion infrastructure package on Saturday.
XLB may be benefited from this package.
Bias on the upside.
TP: $89
Trade Safe
Materials (XLB) was the top sector of the week as manufacturing and core durable goods data showed increase demand and was confirmed in consumer spending numbers. The growth in the sector was matched by increased prices in metal commodities required to support economic expansion.
Energy (XLE) started the week strong and led several days throughout the week, but...
