It’s Still A difficult Call Here . . .
It's still a difficult call here. Are the financials bottoming or just getting going to the downside. GS yesterday broke out to the upside, albeit modestly so. And BAC rallied off the day's lows to leave a bullish looking formation. However, one day does not a trend make..we need further confirmation.
Goldman Sachs Breaking Out
GS reported earnings this morning and now is in the early stages of breaking out of .significant resistance (see chart below, three higher lows now followed by a potential breakout). My thesis remains that if the Financials can hold a bid, it could keep the broader market rally alive. I am however very suspect of […]
US Airways On The Move
US Airways nice chart setup. The stock broke out of a long-term resistance area yesterday on good volume.
EUR/USD V SPX
The intraday correlation between the EUR/USD pair and the SPX remains to be uncanny. More often than not the EUR/USD leads the way in either direction, allowing me to take a clue and trade in the said direction.
Gold
Watch gold here; it's about to potentially break an uptrend line that has been in place since July 27, as well as potentially break horizontal support at 1322. I'm watching for it to find potential support around the 50 dma, which is currently just shy of 1300.
NDX
The NDX seems to have touched resistane (see chart below). Should it break up it could reach 2007 highs. Technically speaking this formation looks to me like an inverse head and shoulder pattern.
Buy the equally weighted S&P 500
It has been our view since the second half of 2020 that the ‘average stock’ is likely to outperform the S&P 500 for the coming years. One way to benefit from this is to buy the equally weighted S&P 500, which can be done with the Ticker: RSP etf
Sector highlight: Bullish opportunities in healthcare stocks
In this sector highlight video, I discuss the bullish opportunities we currently see within the healthcare sector both on the sector level as well as in individual stocks.
Why implied volatility is so important
https://youtu.be/QCtI2wgvO1E Next time you are looking to buy or sell an option, pay close attention to the option’s implied volatility level. This is crucial because high implied volatility options sometimes can prevent you from making money, even if you are dead on correct in your directional assessment of the underlying stock or ETF.
Equities could pause here for a short while
In this short interview I was making the case for a possible near term pause for equities but also the continued bull market through Q2. We also discussed TWTR, oil, and the metals