Broad Market Outlook
Market was down 2% off all time highs in the last 2 days and it was as if World War 3 was upon us. As you read through the rest of the Big Picture, you will hear a repeated theme:
"Sector respecting the retest, and starting to form a new range"
You will hear this more then a dozen times, as I mentioned last week, I still feel that we continue to start to consolidate up here and digest the monster moves we continue to be gifted with.
The main shift we have to adjust to, is that on the 3rd day down in the market, is when we have to be ready to buy on the way up. Easier said then done as most tend to complain or fear the market when it pulls back and are brash and confident when its ripping higher.
We normally buy the breakouts, I will be continuing to focus on buying up off support, which is usually the days when most want to pack it in and free up cash.
Between finding more support buy backs and finding A+ macro set ups, we will continue to find success in the market.
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Macro Rotation Outlook
Dow Jones
We can see a new range forming between $295 and $280, we should want and expect some consolidation up here.
SPY
We can see what will most likely be a new range between $340 and $320, even if we came back to $300, would be completely fine.
Nasdaq
Seems the overall magnet is the $10,000 mark, short term we should expect a bit of a pull back.
MDY Mid Cap Stocks
Mid caps a bit ahead of the small caps, however like a bunch of the other sectors, we are seeing this market respect its retest and starting to form a new range between $383 and $362.
IWM Small Caps
We can see a new range starting to form between $170 and $160 similar to the Materials sector, still lagging its older brothers and trying to play catch up.
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
We will most likely start to see a new range forming between $270 and $250, since 2019 tech is up almost 60%, couldn't hurt locking a little in up here.
VDE Energy
The dog of the bunch, showing up a sneaky support buy back, just be aware, below $70, this thing is getting wacked down to $60 quick. I would lean more towards the latter happening then it ripping $75 and never looking back. Either or, in a year from now, above this area or down through the shakeout, will be one of the best buys in any of these major sectors.
VIS Industrial
We can see the industrial's respecting the retest and we can see a new range forming between $160 and $152, like the fin names, its a bit mickey up here.
VOX Telecom
Telecom continues its march back towards the retest of $104, for now a proper stop would be below $94.
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Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
We can see the Material's continuing to battle in this range between $135 and $125, just needs time to consolidate.
VCR Consumer Discretionary
After a month long rally, the discretionary's are losing some steam up here, we could expect to see a start of a new range between $205 and $185.
VFH Financials
We can see a new range starting to form between $78 and $74, still a bit mickey up here.
VNQ REIT
The second most boring sector in the pack continuing to climb to new highs, for now a stop below $96 seems to be the proper move.
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Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
Staples continue to grind to new highs, for now a stop below $160 looks fine.
VHT Healthcare
Retest getting met with resistance, we can see a new range forming between $198 and $186.
IBB Bio Tech
Retest getting met with resistance, we can see a new range forming between $124 and $112.
VPU Utilities
The most boring sector leading the race, stop vs $150.
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Big Picture Set Up
HON
What more could we ask for, flagging under all time highs, 3rd times a charm and earnings out of the way.
Target $200+
Entry $184
Stop $170
