Market Outlook
The end of summer minor weakness really came as no surprise last week. All week the market sold off but the sell off amounted to a total drop, which was an eye watering 2% at its lowest. Over a 5 day span, that is the paint drying action we knew to expect during this last two weeks of summer.
Now since June, the market has shown us this price action before, we get a week or two up then a few or two slowly pulling back in. Nothing out of the norm and with this, we just need to let the market shake itself out through that 760 area. Once we get that shakeout, who knows, a climb to new highs only takes a 2% climb.
We saw the same weakness in the Nasdaq names as they continue to put in lower highs as the Semi sector continues to be the ankle weight recently.
Back in June it would have been an insane thought that Semi's would be dragging the index down from its weakness. That just goes to show that no matter how strong a sector has been, things can always change.
With those confirmed lower highs in the Nasdaq and Semi names, the message is clear to avoid the grey clouds in the skies while there are plenty of stronger sectors with clear skies ahead.
Materials, Healthcare & Biotechs are the sectors to focus on in the week ahead.
Materials is showing us a textbook breakout pattern forming. While Bio Techs had one of there largest gap ups last week (6%) thanks to a 170% move in MRNA.
Now that the spotlight has been pulled away from Semis and are shinning on the Bio Techs and Healthcare, the focus is on these names.
Bio names such as SPTX, KNSA, EWTX, QURE and my personal favorite WAT are all setting up.
Last week, it was great to see you guys sharing ideas and Jeremy blessed us with this pharma set up with TEVA.
Now all we need to see this week is a break of $38 to get away from this breakout area and for now leaving the stop vs 36 seems to make the most sense. My watchlist this week is a small one as there are a few key swing trading setups in the works.
I hope to continue to see you sharing your ideas in the chat so we can find more TEVA's. Lastly, I will keep repeating myself but thank you all who left reviews with 90+, it means alot that you all took time out of your day to review the book! Be on the look out in 2027 for a fun new book geared toward business owners.
From Bennett
Founder Big Picture Trading
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Cyclical - sectors that are more sensitive overall market conditions.
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Defensive - sectors that tend to outperforming during sub par market conditions.
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CBRL
CLX
CYTK
EMN
KNSA
LYV
ORCL
PAG
SBUX
TEVA
WAT
WLK
XYZ
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