Broad Market Outlook
Last week we saw the major support line in the SPY start to get tested for the first time in this rally off lows. We hit the rebalance zone in the Nasdaq, Consumer Discretionary's, Tech, Healthcare and Telecom. All of which the plan was to ride into the retest, however as the sugar high wears off as we have seen it was time to up stops to get out when those sectors turned (and they did).
Last week was a great time to free up cash, now for some reason we try to rush back in after the first sign of rough seas ahead, let's not this time and said we did. The next areas of support in the SPY are 290, 280 and 270. All of which we could get to very easily.
To avoid some of the lazy trade ideas, let's focus this week on posting a chart (not using the $ to post the chart) and draw out your game plan on the daily. By doing this we can avoid most of those C and D set ups.
Macro Rotation Outlook
MDY Mid Caps
IWM Small Caps
Sensitive - sectors that have moderate correlations to overall market conditions.
Cyclical - sectors that are more sensitive overall market conditions.
VCR Consumer Discretionary
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
IBB Bio Tech
Big Picture Set Up