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Broad Market Outlook
With the broad market up over 12% retesting prior highs, its slim pickings out there with most stocks falling into 1 of 2 camps.
Camp 1 - Just ran 10-30% in a short span
Camp 2 - Has not participated in the recent rally
We don't want to blindly chase Camp 1 just to be involved.
Nor do we want to inch into Camp 2 who aren't even aware their in the game.
From an active trading standpoint it feels as if we are in a ghost town trying to find someone good to trade with. Yet all we see are tumble weeds drifting by.
It seems we might be trying to force ideas, where we could take a step back and focus on finding one A+ set up to focus on.
From a passive investing standpoint, all of the support buy back that we put on two weeks ago are doing some heavy lifting for us while we try to find an A+ swing idea.
Let the passive ETF's continue to support us as we find our top idea for the upcoming week!
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
VDE Energy
VIS Industrial
VOX Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
VAW Materials
VCR Consumer Discretionary
VFH Financials
VNQ REIT
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Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
VHT Healthcare
IBB Bio Tech
VPU Utilities
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Friends and Family Challenge
To keep the Alpha chat with just the most highly motivated traders, we have made it much harder to get in.
If you have a friend or family member that would like to give trading a shot, forward them this email and have them click here to start.
If they do, let me know there email address, I will set it up that if they decide to continue they will get the same rate as you, and you will also get a free month as a thank you from us!
Any questions let Heaven or myself know.
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Big Picture Set Up
NFLX
NFLX continues to flirt with this major support level and could just as easily smoke $460 to the downside, however if it still wants to hold that area, looking to buy up through $500 vs that area could be a trade taken with the mindset of holding at least until a retest of the prior highs.
PLAN
PLAN has been flagging under $65 since its last earnings and a prime example as to why when you catch an earnings gap up correctly your mindset needs to be holding until at least the next earnings.
If PLAN needs another earnings report to push it through $65 lets be ready for an Opening Range Breakout up through $65 as a possibility.
VRTX
After gaping down on earnings VRTX has show that the buyers are still there holding up $200 as it continues to base out to work on filling the gap up through $230. These trades take time so we should keep an eye on that level however know that it can and most likely will push up and test $230 a few more times before being ready to fill the gap.
MDC
MDC has been battling with this $47 level for over a year now as it continues to flag vs $42. Will be keeping an eye out for an entry up through $47.
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