Market Outlook
The market almost had a pull back this week, yet for some it felt like we were in the great depression. With a nearly 4% pull back from all time highs, the chatter around the market was as if we were back at the Tarriffs lows with no end in sight.
Which really comes as no surprise, the market gifts us with easy times long enough that any temporary pain, no matter how small feels brutal, when in reality it shouldn't.
But, with all that being said.
The trend is still in tact and the buyers stepped up late in the day on Friday to keep the index in the breakout channel. 650 in the S&P is still the real out and it was a great sign that the buyers stepped up to support the index at 660.
Now we have all seen the underlying weakness in various sectors such as Consumer Staples, Materials, Financials and Telecom.
Yet there is some strenght still out there, REITs held up nicely at support, even if I got shaken out 4 cents. Consumer Discretionaries are setting up nicely and Industrials caught a nice bid on Friday that some of us took advantage of.
The market is still strong, but it is showing some signs of strain and after this run its been on since April, anything from here on out till the end of the year is a bonus. Given the 4% pull back over the last two weeks, and Fridays reversal. One could expect some type of bounce going into next week as the market continues to climb towards the big round 700 in the S&P.
The focus going into the week should be on Industrial names at the top of the list as they've already came into support and bounced back. Consumer Discretionaries names are next on the list but still need some time to set up.
As TSLA is a prime example of one of the best charts out there in that space, but still needs to pull in some more, maybe even shake out 400 before its ready for the next run up through 470.
Right now being extremely selective is key, and finding tight entries are key. Maybe my VNQ stop was too tight, as I got shaken out 4 cents off the low, but I would rather take a tiny loss like that. Then get trapped in a name thats breaking macro support.
As earning season is starting to slow down, its time to keep scanning those names that have gapped up as most of those winners need a few weeks to settle out and flag out.
Last two weeks were slow but after testing support broadly, we should have some nice price action on our hands in the week ahead.
As always, the more you share your top ideas, the better we can focus on the best ones, while helping you avoid the ones that are simply not ready just yet.
From Bennett
To read this entire newsletter, get access to our alerts & all the additional benefits of being a Big Picture member click the link below to start your trial today!
_____________________________
_____________________________
Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
_____________________________
Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
_____________________________
What Big Picture Offers:
Looking to join a group of swing traders focusing on low risk trades?
Need help with your personal or business tax filings?
_____________________________
Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
_____________________________
What's been on your mind about your trading lately? Reply to this email with any question or idea you've been thinking about. I'd love to hear it and dive in deeper with you.
_____________________________
Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
_____________________________
Big Picture Set Up's
REGN
SNA
TSLA
TXT
VEEV
WMT
_____________________________
If this made you think, laugh, or learn. Share it with the smartest person you know (or the one who needs it most).
_____________________________
Trips Are Back - Check the Events tab on Discord
Friendsgiving November 29th - All Welcome
Address 374 N Midland Ave, Saddle Brook NJ 07663
Starting at 8pm
Vermont Ski/Snowboarding Trip Jan 22nd to Jan 25th
Utah Ski/Snowboarding Trip Feb 14th to Feb 21st
Italy Motorcycle Racing/Rally June 25th to July 2nd
_____________________________
Terms and Conditions Big Picture Trading (“Company”) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or urgencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.
