Broad Market Outlook
Scanning the market and major sectors we saw them flag all week, where as the week prior, most (myself included) were expecting to see more downside after the big gap down that we were use to seeing back in March.
Most of the market has been thinking the same and voting with their wallets. We saw in May the market saw the largest outflow of money out of the market. The last time we saw this was back in 2009 before the bull run that lasted over a decade. With that happening and the market still able to grind higher, flag and absorb all that selling is a great sign for us.
The market had a different plan and as the market changes, so do we. Going into this week, it could be a time to start finding stocks that are also flagging or setting up for support buy back plays. Where last week was a more defensive/cash raising week.
We saw bio techs breakout to new all time highs with healthcare flagging under all time highs and scanning that space we find IONS flagging under $60 that could be ready to breakout soon.
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