For Growth Investors, there were a few shocking days over the past months where the indexes went up but our portfolios went sideways or down. There's no worse feeling than having the market go up and have your portfolio go down.
The cause was sector rotations as investors moved into "discounted" stocks that were hit the worst during the market crash of 2020...
The past week there was rotation into Energy (XLE). There is precedent for rotations into energy marking tops and continuing as safe havens during corrections.
In the bottom chart, you see the rotation happening in September 2018, just before three months of market declines (21% on S%P 500 and 24% for Nasdaq).
Looking back further to the 2000 tech bubble, look...
Here are the sector winners and losers the past week. XLB (Materials) wins out, gaining 1% compared to the other SPDR ETFs combined. XLC (Communications), XLK (Technology) and XLE (Energy) at the bottom.
Breaking out XLB into it's top performing stocks for the week, you can see which ones carried the weight of the moves including EMN, LYB and CF. All of these...
XLC is dancing on the edge of a potential decline with significant resistance and a potential double top into the 57.62 level. We are considering this entire 5 wave impulse as complete with a potential (A), (B), (C) decline. Looking to place a 60/49/47 Put Debit Butterfly expiring Aug 21st with debit no more than 3.60
After showing considerable strength during the selloff Communication Services are resolving higher from a ~2yr base relative to the S&P 500... $XLC / $SPY
Might have something to do w/ the fact 60% of holdings are from the Internet & Software Services industry... $GOOGL $FB $NFLX $IGV $XLK
Episode 10/11 : US (SPX) Sectors Technical Analysis Series - 31st of July 2019
Brief Explanation of the chart(since everything is labelled on there): (30 seconds read)
First and foremost : Similarly to the XLRE Index, the XLC was formed even more recently(2018), so obviously due to the lack of data this analysis should be seen at most as informative . In...
As you might know, I love my divergences. I think it is one of the easiest ways to spot reversals without lag (i.e. Basically every other indicator will tell you to get in after the reversal occurs. A divergence will get you in before it happens). The only caveat is sometimes it takes multiple drops before the reversal occurs. This means that divergences are great...
Whats up Traders
For the same reasons that we have been playing the bear on the XLK - we will be looking to play the bear on the XLC.
DYOR - check out the composition of this ETF, and explain to me why moving through the midterms you think it will do well?
Best of luck everyone, on all of your trades.