Broad Market Outlook
With the Nasdaq closing at all time highs and bullish engulfing the thought would be higher prices which we will most likely see, let's just remember that we are in an upward channel and near the upper end of that range (you will see in the chart below).
We did a great job two weeks ago buying up off of support in this range, now when everything looks perfect tends to be the time when every one is bullish and we all know how that goes.
Anything above 10,600 in Nasdaq hold onto your winners, if it starts to test below that area, let's see where the dust settles. The SPY on the other hand has been flagging nicely and looks poised to retest all time highs before the end of the year.
Utilities, Consumer Staples, Financials, Materials and Industrial's have all been trading similar to the SPY in tight flags that look ready for the next leg higher out of there flags. While Tech, Consumer Discretionaries and Telecom might be a bit ahead of themselves like Nasdaq.
Let's play offense with the sectors flagging, and holding onto and up stops in the sectors and markets that are getting a bit too hot.
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
Next Trading Experts Trip!
Just kidding, but seriously, the 3rd annual Trading Experts Vermont trip is set!
We will be taking over a 6,000 square foot, 10 bedroom massive log cabin with its own rock wall, snowboarding ramp, indoor trampoline and Jacuzzi all minutes from the mountain!
This house can sleep 20+ plus members, for couples, there are 5 private bedrooms (first come first serve)!
The dates will be Thursday January 14th to Sunday January 17th, to find out more information shoot me a PM on GroupMe!
Big Picture Set Up
For almost 2 years KMB has been flagging under this $148 all time high, if you have been in Alpha for a year or longer, we have taken a few trades in this name trying to catch the breakout. Recently KMB has been flagging in a tight range and as of this week has gotten even tighter (a bit mickey), this little mickey flag inside the big flag is giving us a chance to sneak into this breakout on very tight risk.