Market Outlook
Another summer trading week in the books and the overall markets continue to grind towards new all time highs. As the market continues to form mickey mouse flags, it's giving us easy spots to add on the way as the market continues to follow the path of least resistance. Nasdaq names continue to lead the pack with the S&P names closely in second.
Sector wise, there should be no surprise that Tech and Semi's are leading the race higher, while Healthcare and Bio Techs continue to finish up in the back of the pack and continue to be two sectors, which are best to be avoided for now.
For all the Big Picture model buyers, we sometimes forgot or stop to think of the benefits of consistent weekly or daily dollar cost averaging. Where below we can see a visual example of what we do every week.
At of all these buys this year and the market at all time highs, virtually every single buy was profitable. Now sure in April when the markets were at lows, you might have second guessed the approach but if you stuck with it. You are now seeing that all those buys are greatly in the money with some of the best buys. Which were at the times when you may have had reservations, currently yield the best return. Some of those April buys near the bottom are up 40% today. When you or I didn't have to lift as much as a finger.
As these rewards continue to present themselves for sticking with our long term game plans. They act as great lessons we learn from. The more we learn from them, the better we are at being able to attack when the next market crash comes. While most people fear those days, we actually have the capital ready and know exactly what to do when given the opportunity.
For now, who knows, maybe the S&P and Nasdaq continue to race up towards 700, maybe the market somehow finds a new magical fear to crash the market. But whichever happens, we don't care, we have our long term game plan written in concrete. We are going to buy every day or week until we need to use those funds for the next big investment.
From Bennett
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
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Big Picture Set Up's
AAPL
EXPE
GOOGL
MDLZ
OLED
ULTA
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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.
