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- Best suited in a taxable account
- We are willing to hold positions against us as overall sectors and markets are much less volatile than individual names.
- We are buying or adding (dollar cost averaging) when there are actionable set ups.
- We are selling for either profit or getting out for break even if better opportunities arise elsewhere in other sectors.
- If you have more than $50k, we can set this model up for you
Sensitive - sectors that have moderate correlations to overall market conditions.
New highs, tend to get met with new highs, up those stops and let them run!
Energy has been the weakest sector of the bunch, just like REITs were at the beginning of the year starting at new 52 week lows and ending at new 52 week highs, with all the other sectors near highs, this is a sector that could yield some upside if you are looking months and months down the road, short term, we could easily see a flush of support.
Industrial's are running into the major resistance level for the 3rd time, the real out is 10+ points lower however you could add light if you already have some.
This base has been forming for almost 2 years and the measure move of this pattern puts it right back at the prior highs above $100, this is a very slow sector, so you need to be patient not perfect with your entry.
Cyclical - sectors that are more sensitive overall market conditions.
Materials are working there way back to breaking this 130 area, with a clear line of resistance and solid higher lows, its only a matter of time before it does.
VCR Consumer Discretionary
We can see this wedge forming in the discretionary's.
Financials finally broke that level of resistance that has been holding them down for almost 2 years! The next real magnet will be the prior highs, long way from support so we should expect a straight ride back to highs.
The REIT sector has been on a monster run with low interest rates this year, however we can see the flags getting tighter and tighter which usually means the start of the end of an overall run, time to tighten up those stops.
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
The Consumer Staples are flagging near highs, which have came a long way this year, if they were to shake some weak hands and pull back a bit, would be much healthier for a breakout down the road, if we continue to inch back to highs, would not expect a hard break.
Healthcare has gone on a straight up run off lows back into resistance, with this doji at highs, they might need to step off the gas pedal and consolidate before taking out this area to retest prior highs.
IBB Bio Tech
Bio's are cooking, drop a 106 stop in and let it run!
This VPU is flagging at highs, if the market continues to hit new highs, I would suspect this sector to start rolling over and continue to test recent support instead of recent resistance.
The New Big Picture Set Up
You might remember when we were hawking the 280 buy and unfortunately missed the base break up off support that worked out great. Now we are being given another chance to grab this 320 breakout to start that move back to the prior highs of 370! Remember this move back to highs can take months, not weeks, buy light and be patient.