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Broad Market Outlook
There was a study done years ago that compared the pain inflicted on burn victims when there dressing had to be changed daily. This was an extremely painful, yet necessary daily routine. The problem was that the nurses often would remove the bandages slowly with the hopes of inflicting less pain. When in reality removing the dressing faster caused less pain overall even if it felt like the opposite.
Last year we had plenty of fast ripping off of the markets band aids as we can see the visually steep sell offs in 2022.
Now most of 2023 was the oppoiste of that with breakout after breakout with virtually no need to even think about ripping a band aid off until recently. We can see the steepness of the current breakdown stage is far less aggressive compared to what we saw in 2022. This slower break down stage often will feel more painful as the band aid is slowly removed.
I was in the camp that we would have been new highs by end of year, yet for now that seems to be at a stand still. Scanning most sectors, the story seems to be the same. Simpy avoid, avoid and avoid for now until the band aids have all been slowly removed.
Virtually every sector is near a recent pivot low area of support or heading towards a new lower low. Utilities is the weakest in the bunch being the first sector to put in a new 52 week low last week as it broke down through the lows of the base it was in.
Now on the flip side even the stronger sector out that is not really showing us anything very promising.
As it got within 1% of retesting the all time high, the Energy sector seems poised to be forming a topping pattern. That is bound to roll over lower in the short tern under this 126 area.
As the recipients of this band aid pulling off experiment, we could ask for the nurses to just get it over with and rip them off. But rarely does Mr Market grant our daily wishes.
Less is more right now and trading lighter is often far wiser then trading heavy.
From Bennett
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The Entire 11 Step Series is Published!
After 7 years of writing and the last 18 months updating, editing and getting each book in the series published we can breathe a tiny relief. Yet the work is not done as we continue to update and improve the lessons in these books!
We have lowered the soft cover book cost down to $4.99 and the hard covers down to $9.99, if you have enjoyed the series and would like to add the entire series to your bookshelf you can do so at an affordable price. As always if you can support by leaving a review on Amazon with a picture of the book we will credit you any cost you incur!
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Trading Experts Comma Day Shirts
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Utilities
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Big Picture Set Up's
REGN
VMW
