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Broad Market Outlook
This week we continue to see the lesson of the retest, how in the moment leading up to it, most are enthusiastic and excited for the possibility of a continuation of the current trend resulting in a bigger account balance.
However the dream gets cut short as the trend changes course and starts to stagnate. One of the clearest examples of this has been in the Consumer Discretionary Sectors (think AMZN, HD, TSLA,MCD, NKE,LOW).
All of these stocks have gone up huge in the last 5 months
AMZN 110%+
HD 105%+
TSLA 560%+
MCD 90%+
NKE 110%+
LOW 200%+
Yet in the last month, they are starting to cool off
AMZN -8%
HD -1%
TSLA -12%
MCD +1%
NKE +6%
LOW +4%
They are starting to consolidate the major moves they've had, which is very healthy and something we want if we every expect this stocks to continue there long term trend higher.
We are see this shift from expansion (up trending) towards a consolidation (range bound) market. As this trend continues to form, we need to focus on buying up off support and selling into resistance.
In the SPY the resistance area is this $350 area while support is down in the $320 area. We need to have selling on the brain up here and buying when we are back near the support area. This is easier said then done but this is what's required.
Be patient, trade the ranges and wait for your set ups to come to you.
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So pumped to see you guys and girls (Abby, Alex Smith, Andy Hsu, Ashish, Ben McMullen, Dr Moore, David C, Garret, Greg Delport, Jay Kennedy, Joel, Jony Negrete, Justin McEwen, Kelvin Burdiez and Reid) taking your monthly goal setting serious!
Cant wait to work more closely with each of you as you increase your overall network and exceed those goals your setting each month!
If you would like to start tracking your net worth shoot me a message on GroupMe and we will get started today!
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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We are look for 1 more member looking to add a source of income drop shipping with us on Etsy, if interested shoot me a DM!
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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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Major Markets & Sectors
S&P 500, Nasdaq, Dow 30 names + more!
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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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Don't forget you get 2,000 points for completing your Monthly Goal Setting!
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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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Big Picture Set Up
ECL is showing us a nice sneaky buy back up through this $210 after, it still may take some time, but something to keep on the radar.
JNJ
So far JNJ has attempted to break this $155 all time high level 3 times, each further attempt should continue to increase the likely hood of this name starting to work its way towards becoming a $200 stock.
PLAN
PLAN has been holding this earnings flag quite nicely these past few months under this $64 level that goes back to the beginning of this year. We can still see that $64 seller is still there however in time, we should be able to get in for a move higher into the $70s.
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Trading Experts 3rd Annual Winter Retreat!
In just a few short months (Jan 7th to 10th) we will all be getting back together for the 3rd annual Winter Retreat!
Over the last few years, we have spent this time solely on connecting and having the best possible time, while leaving the trading aspect aside. This year we will switch gears a bit and include a session run by Shake on some of his best trades this past year and I will run through some of the most important factors when it comes to long term financial planning.
Given this massive estate has its own gym with a perfect wall for us to project the charts and lessons that we will go over during the trip!
But don't worry we still plan on having a great time and even hired a pianist to play live music in the house all weekend!
We still have room for 2 more Alpha members to attend, if your interested in attending shoot me a DM!
Cant wait to see you guys (Alex Park, Paul, Alex Adams, Andy Hsu, Rob Learn, Max Varga, Ryan, Justin and Alex Schuckers)
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