Broad Market Outlook
Going into last week we did a great job at being open minded to the two possible outcomes, the market breaking support and preparing for a rocky road ahead or being ready to buy up off support if the market wanted to continue to play ball.
We know clear as day that the out for the SPY is 297 as long as we continue to flag above it, we would expect to see new highs in time. Now going into the week we are in a bit of a harder spot as mostly all sectors and markets are 3rd to 4th day up which is a hard time to look to press it.
Consumer Staples, Utilities and Financials are still flagging tighter and less extended then the other sectors, so we can find some tight set up in those sectors.
We know the saying "new highs tend to be met with new highs" and with Nasdaq continuing to follow the trend its been into new highs, the rest of the market should and most likely will follow the leader.
Now that we are back at highs, with all that has happened this year and all the reasons most had to sell and get out of the market, this was a crash course as to why we always want to be in the market. Sure there are times that will check our ability to stay the course, and if you have the mindset to look further down the road then a foot ahead as most do. You will continue to excel in the markets.
From Ben G
Macro Rotation Outlook
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
JBHT has been setting up under this $122 level for quite some time now, as of late after the earnings gap up, its been doing a great job holding this earnings flag while still respecting the $122 level keeping it as clean as a blue sky breakout can get. For now will be looking to buy up through $122 vs $115 for now. The measured move of this set up should bring it to around $175 in time, however if you are aiming for that target a $115 stop most likely will not be realistic.