Sector Rotation Spreads for the S&P 1 of 2. Using this in conjunction with the info from stock charts can help us see overall trends. Also with this data plotted we can then apply TA and Indicators to them as well to get some better insights in who potentially can outperform the index.
Episode 6/11: US (SPX) Sectors Technical Analysis Series - 17th of July 2019
Brief Explanation of the chart:
Wave Extension 1.618 target reached 64.34 (based on length of drop from 2009). Sin lines represent the stages of the cycle(it can't always overlap perfectly). Current bullish channel recovery since the drop that happened at the end of 2018 seems weak....
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...
New bullish credit spread on XLB (materials). After two weeks of bearish movement on XLB, we saw a close above $57.92 support and a bullish open this morning. Looking for bullish to neutral movement this week.
Max profit 59.00
Break even 58.72
Adjusted the XLB bullish credit spread to add a bullish credit spread one strike...
No One talking about Materials sector today yet it's the one that changed momentum character today. Leading indicator for Industrials. It might still take some time to start falling but the cross today will change how institutional investors chase momentum in this sector. This isn't necessarily a good short but it is something to be aware.
XLB (Materials ETF) has been consolidating for weeks and looks like it's getting ready to make a move higher. With Squeezes on both the Weekly and Daily Chart this looks like a 'set it and forget it' type trade:
In a perfect world, I'll be looking for a pullback tomorrow where I can pick up the 58/57 Put Credit...
The deconstruction continues in material stocks. The culprit this time around was a poor reading and interpretation of construction spending. I think it was a big over-reaction given the overall trends.
Deconstructing Materials Stocks. drduru.com $USCR $AYI $XLB
The Materials Sector SPDR Fund has been in a bull trend since the end of the financial crisis. The trend has narrowed but remains upright since December 2016. The fund has been in a more specific trend channel since February and has created firm support and resistance levels. The fund is currently at that resistance level. Below I have laid out the reasons and...
We have a Cypher Pattern in the making right now however I will be entering this trade only if point D of the Cypher Pattern has completed.. If Trading is your primary income, it is very important to always have pending setups however you must stay disciplined and not fall into the trap of trading just because! Patience is key in this career and the more you...