Market Outlook
As bored as we are with the market being close today. It is always funny to see how quickly the market's fear can turn into confidence. The Japan Carry Trade Correction which felt like the start of some of those 2020 crazy days. Quickly pivoted as we rocketed back to new 52 week highs for quite a handful of sectors.
Now that the kids are going back to school and most families are returning from vacation. We should expect to see some more volume come back to the market.
Now this is one nice bull flag that is forming in the S&P, we should expect to see a push to new all time highs during this shortened trading week. But we should remember what tends to happen at this retest areas just when it looks perfectly poised to break higher. Sure it does, but rarely is the volume strong enough to continue the trend higher after a few days. Even with parents returning to work, the retest area is still the retest area.
Now broadly, sure the S&P might only have a few percentage more to push before it needs to pull back. There are still quite a handful of individuals names that are setting up nicely. For those in MMM with myself, the Dow 30 names have been very strong for the most part. GS, PG and UNH are another set of Dow 30 names that are also flaggnig near highs and looking like they are just getting ready for a next leg higher. For names like these, they are well passed the first return or even the 3rd attempt at their breakout levels for that matter.
For the week ahead I will be keeping a close eye on this Dow 30 names and a few others that have been setting up nicely such as QCOM and MTZ.
Sector wise as much as we have focused on Consumer Staples as we caught a nice breakout in that sector of the last few weeks. Currently the Material sector is setting up for its 4th major attempt at its breakout level after a tiny pull back as already formed. For the next few weeks we should keep a close eye on the Material names and scan that sector daily to find breakout setups to take advantage of.
From Bennett
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
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Big Picture Set Up's
GS
MTZ
PG
QCOM
MMM
UNH
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