- Rank: 36
- Followers: 17
- Votes: 33
- Years Member: 2
- Last Update: 22 September 2020, 1:11
Market Breadth Analysis
General Market Commentary
The "market" was down last week but these were strengthening and that is long term bullish.
Materials ETFs rising as the bull market matures and the economy continues recovery:
SLX steel +4.9%
REMX rare earths +5.5%
BNO oil +7.5%
KOL coal +6.3% (yes, coal)
Still some growth area ETFs outperforming (Catherine Wood at ARK Funds is a great stock picker):
ARKG biotech +10.4%
ARKK innovation +5.3%
ARKW info tech +3.1%
Look beyond the recent areas of strength. It is a market for stock pickers.
Perhaps the drop is not done but the rotation/consolidation is bullish. Looks like June to me.
Also look at precious metals: PALL, GLD, SLV.
101 Buy-and-Holders: Fed has your back
102 Investors: healthy pullback may not be done
103 Swing Traders: buy the dip
104/105 Active Traders: showing current weakness
106 Aggressive?: XLI, XLF, IWM stronger = bullish
107 Defensive?: all strong for now
108 Top?: dropped as expected
109 Bottom?: not applicable for now
110 Intermarket: now at inflection points but expecting rebound
111-113: Sector strength: indus. and matls took off, financials, health care, energy bottoming?
114 Cap size & growth/value: small growth
115 Factors: --> rotation showing all over here
116 US Dollar: down continuing
117: Asset Rotation: Stocks 0, Bonds 3, Real Estate 2, Gold 2
400-405: Various factor ETFs side by side, and relative strength (RS) versions as well
501-508: Simple ETF approach: ARKW, TLT, XLRE, PSLV (yes, ARKW is best of breed for stocks)
6xx charts for my son (if present)
Stock selection: Chart 118
Recommend "Trading in the Zone" by Mark Douglas about the mental game.
Note: The profile says PRO but I am an engineer. Updates on weekends.
Finally: "It is enough to identify prevailing conditions and respond to them as they change, without any need to predict." -- John Hussman
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