Fundamental / Technical / News analysis
Microsoft earnings were positive.
But they were not enough to break this channel since June 10th.
Today we gapped above resistance, breaking the channel.
This was caused due to Microsoft winning the JEDI contract from the US government; who beat Amazon, Oracle and IBM cloud platforms.
Revenue from the JEDI contract is...
$SPX Nothing more to say.
There's no reason to fight this rally. If you're long, stay long and let it ride, we might have a few more days at least...possibly more weeks. New highs are likely.
My initial buy on 8/5 was the EXACT bottom.
I post my trades live on Twitter: @marketmind3
I also give additional analysis and more insight, Bitcoin and stock picks in...
BOT VERTICAL XLK 100 20 SEP 19 79/78 PUT @.23, .77 max profit.
Risk to reward ratio just under 1:3
Gives a breakeven price target of 78.77 which is 3.4% lower from the spot price at the time of trade.
Longed the 30 delta, shorted the 25 delta.
It's a lower probability trade with under 30% estimated probability.
XLK seems to be hugging the high...
Episode 3/11: US (SPX) Sectors Technical Analysis - 16th of July 2019
The Tech Sector has indeed outperformed almost all other sectors in the economy, since the 2009 financial collapse(approx. ~520% increase since the troughs of 2009).
However, with the new threats to global trade, the tech sector might be the first one to take the worse drop of all the sectors....
I heard some interesting commentary this week from the pros about watching for signs in the cyclical:defensive sector ratio.
I put together this chart using (XLK+XLI+XLB)/(XLP+XLU+XLV).
It is a composite of tech, industrials and materials indexes as a ratio to staples, utils and health sector indexes.
The chart ratio is about 1:1 right now.
In a late stage...
Not the most likely outcome.. but momentum is down.
Japan reports GDP on sunday night.. would a huge gap down drive risk off?
This ladies and gentlemen would be the dip to buy!
Get the deflationary risk out! Have the Fed raise rates! Then market can survive off liquidity!
XLK - Update to short trade thesis.
Trading XLK short as long as negative MACD and DMI divergences linger. No new high today as market rallies, big picture chart still consolidating. Seeing SOX lag today is a good sign for being short (XLK over 20% Semiconductor weighting)
Need a breakdown soon though