Market Outlook
Last week we had some extreme selling pressure as the market sold off a mind blowing 10 points or just shy of 2%. Obviously kidding as the sell off was nothing to see unless you really zoomed in.
The market continues to stay in the "don't fight the trend" stage 2 breakout stage, while getting extremely close the MOAT. This macro resistance area has not been broken since it started to form more then half a decade ago, I would not expect to see anything different. It will be very interesting to see what happens in the coming weeks as these two key trends intersect.
In the short term, we've seen the subtle underlying weakness. Very subtle, sectors testing support for the first time in months. Such as Materials, Healthcare & Consumer Staples.
Key breakout set ups from individual names, more often then not, have been met with profit taking then buyers pushing the names higher.
Key breakout set ups from individual names, more often then not, have been met with profit taking then buyers pushing the names higher.
But that does not mean there are not pockets of strength, as the energy sector been strong or Small Caps retesting ATH's or the few handful of names holding this market up. Most of these names are stocks were holding, TSLA, OKLO, RGTI, INTC, BABA and the many others.
For myself this past week, if it was not apparent from my pre market posts in the middle of the night. I was over in Italy, as I've spent my last few summers, learning the patience of waiting an hour to get your check for dinner. This past week away was one of my most profitable while spending the least amount of time in front of the screen. Some of my largest holdings (BABA, INTC, TSLA) all had pretty much record weeks. While all I had to do was the same as before, nothing. Just hold them as they increase in value.
My week away from the screens made me far more, then if I had spent that time watching each of those names closely. Something I continue to try to relay to you, which is, find your top idea and let it work. Holding one winner is far more profitable then trying to quickly replace it for another one. Riding TSLA 20%+ in 3 weeks is much easier, then finding a new 7% winner each week.
Going into the week ahead, my favorite chart is SHEL. The energy sector has been strong lately. While SHEL has been flagging out in a $4 range for the last few months.
Looking back the name has not closed above $74 a share going all the way back to 2018. If SHEL is able to break and close above $74 this week. This is my main focus from the swing side of things. There are still plenty of great charts out there and now that I'm back, hopefully you will be sharing your idea's in the chat as well!
Hope to see you join in tomorrow after the close for the Chart Talk, if you cannot make it and have a game plan you would like to be reviewed, post it in the chat and I will go over it after the close.
From Bennett
To read this entire newsletter, get access to our alerts & all the additional benefits of being a Big Picture member click here to start your trial today!
P.S. You may be surprised at the discount I apply should you join the team 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
_____________________________
Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
_____________________________
Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
_____________________________
CAR
ERJ
LIN
MLM
NVDA
OKLO
PII
RGTI
ROKU
RRR
SHEL
TEM
TSLA
ULTA
XYL
_____________________________
If this made you think, laugh, or learn. Share it with the smartest person you know (or the one who needs it most).
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.
