Broad Market Outlook
With the SPY breaking 400 for the first time the path of least resistance will more then likely continue to be higher. As we have seen this first hand all 2021 with 16 new 52 week highs. Continuing to confirm the follow the trend thesis.
At these major levels there tends to be 2 common outcomes:
1. The 400 area starts to become an area of resistance where it can trade a few points higher however it often loses momentum and falls back into the range. SPY 300 was resistance for more then 2 full years as it traded in a 25% range.
2. It breaks 400 and rarely looks back as it sets its sights on the next major magnet (SPY 500), as the price points increase with each major interval (SPY 100, 200,300, 400,500 etc) the percentage gain becomes smaller and smaller (easier to achieve) yet most conversely think it will become harder and harder.
ie. 100 to 200 = 100% gain
200 to 300 = 50% gain
300 to 400 = 33% gain
400 to 500 = 25% gain
500 to 600 = 20% gain
We see this most popularly with bitcoin as $50k to $60k sounds crazy, yet its really only a 25% move.
Those tend to be the 2 major outcomes even though we have gotten to 400 quickly relatively speaking, 80% in a year off lows, it has not be an extremely parabolic move as there are plenty of clear pivot lows for buyers to step in and support the market.
ie SPY 380
and basically every 10 points lower
So this begs the question, what does one do to continue to make money?
The answer is simple, continue the Easter egg hunt we gone on every single day for the best ideas.
Last week was a quiet week for the most part if you insert the excuse that justifies the quietness, yet for those who went hunting for Easter eggs scanning the S&P 500, Dow 30 or Nasdaq were able to find dozens of low risk support buy backs.
No whatever if the market is grinding higher, crashing lower or running around in circles our daily routine is the same. Continue to scan as many stocks as possible to find those golden eggs that most are too lazy to look for.
Some founds great low risk set ups in names such as AMD, UPS, MMC, SNAP, DHR and plenty of others by simply looking. Often when its quiet are the best times to prepare yourself for when everyone gets chatty.
Limited Edition Stock Market Rally Shirt
Macro Rotation Outlook
MDY Mid Caps
IWM Small Caps
Do You Have The Patience to Make It On the Leader Board?
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
We have a few exciting experiences planned for the year ahead. We hope you find a trip that sparks your interest to come enjoy and network with other like minded members!
Blue Ridge Rally May 7th-9th (1 Spot Left) Reply Rally to learn more!
Beach Week June 16th-19th (12 Spots Open) Reply Shore to learn more!
Vermont Snowboarding Jan 20th-23rd 2022 (15 Spots Open) Reply VT
Snowmobiling Trip Feb 11th-13th 2022 (12 Spots Open) Reply Sleds
Miami Yacht Day March 11th-13th 2022 (12 Spots Open) Reply Yacht
103 foot Azimut yacht we are commandeering
Can't wait to see you on the next trip!