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Broad Market Outlook
With the market ticking new all time highs near the end of the week, this is often a good sign that we could expect the path of least resistance to continue higher. As the common saying goes "hero's mark the open, pro's mark the close".
As much as we don't care for news, there was a big headline this week for the proposed increased on capital gains on the wealthy. This scared most for about a day as most would not be effected by said proposal anyways.
Most important is that it's simply a headline to get people talking.
The people who would have to put that bill into action are the people that would actually be negatively effected the most as the average net worth of members of Congress starts* at a million plus. With an average salary of $174k they are impressive savers.
We all focus on our best interests and increasing the capital gains tax would hurt said people best interest the most by executing it as most of there income comes from what they "want" to tax more.
In any negotiation or "talk", its wise to ask for the most as it puts you in a favorable position to settle for less.
In reality long term capital gains taxes have stayed virtually the same for 2 decades and have actually gone down over time.
People remember the headlines, they rarely remember the fine print.
Continue to take your trades and if you have to pay taxes on your profits, that should be looked at as a great thing (being profitable). Or if you hate paying taxes there's always that account called a Roth IRA.
From Ben G
We have a limited supply in Red, Black and Blue. As always, we will drop a surprise gift or two as a thank you for supporting the Trading Experts business!
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
MDY Mid Caps
IWM Small Caps
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Do You Have The Patience to Make It On the Leader Board?
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
VGT Tech
VDE Energy
We have seen this run in Energy before, what follows is starting to look similar as last time as well.
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
What tends to happen at the retest?
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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
Have a friend that would like to give trading a shot?
Tell them to DM us on IG saying "friends and family"
They can start for the next 90 days at no cost.
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Big Picture Set Up
ABBV
ABBV we might just been getting away from the pain of this trade as ABBV gets back near its prior short term highs. At this point we should be looking to sell at the retest if it continues this move higher.
AMD
Will be keeping an eye on $84 in AMD as it has started to put in higher pivot lows and showing us a clear level of resistance.
DHR
With a great earnings reaction DHR is climbing to new highs, there is no resistance at these new highs until buyers get tired. A stop below $247 or $237 could also make sense.
DRI
DRI with earnings behind it, is showing us a nice Bull Flag on the daily chart, almost Blue Sky's, will be looking to be involved above $148 and $150 vs $140.
MMC
MMC has grinder higher nicely so far, as we are seeing some indecision at highs, could be a time to expect its first shakeout.
MU
MU could be a support buy back candidate shortly as it continues to pull back into this major support level. One to keep on the radar.
MXIM
MXIM is setting up for a textbook Blue Sky Breakout with earnings on Tuesday that could be just what is needed to push it to new highs.
PHM
PHM had a little shakeout and has continue to hold above the $50 Blue Sky Breakout level, seems for now the stop should still be vs $50 with the goal to add above $55 in time.
QLYS
QLYS has had a seller at this $108 for quite some time now, will be looking to buy above $108 in time.
SNAP
The real out is vs $47 however if you bought up off support through $52 you could have a stop vs $56, we should be looking to add about $65 in time.
UPS
If you are holding into earnings on Tuesday, the proper out will be vs $154.
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Traveling Experts
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 (Sold Out) Reply Rally to learn more!
Beach Week June 16th-19th (8 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!
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