Market Outlook
After two weeks of indecision as Nasdaq and S&P both had inside weeks. Last week the bulls took charge and pushed both index's higher to confirm the continuation of this bull market.
As we know, the big thanks to this market lift has come from the Semi sector as the names in that space continue to defy the laws of price action. While there are still are plenty of strength and textbook bullish patterns forming in numerous sectors.
Telecom continues to form a textbook bull flag over the last 6 weeks.
Consumer Discretionary names are gearing up for a blue sky breakout. Industrials looks great and even healthcare is starting to turn around. As crazy as the moves have been in Semi's, there have still been plenty of macro base breakouts that have started to wake up. Which could be due to clear rotation. Just think if you are up 100 to 1,000% in a Semi name over the last month or few years, if you ring the register up here. Finding the next deal is going to be from a name that has been out of favor. If you are properly rebalancing and we are seeing that very clearly.
Now the market has been easy lately, and it reminds me of the clip from succession about "success being too easy." The market has been on easy street lately and it is one for us to enjoy as the breakout trend continues to point north. But it is not one that we want to get overly cocky about. We still want to respect our rules and follow our game plans. If we miss a breakout, so be it. If you have a winner on your hands and want to sell it just because you want to find the next winner, let the stock tell you when to sell. For now holding vs the weekly low continues to be the smart move in most names.
The path of least resistance continues to be higher, hold your winners, pick your spots, stick to your game plan and remember the market does not care about your or my PnL.
From Bennett
Founder Big Picture Trading
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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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What Big Picture Offers:
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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
ADBE
ARM
CSCO
CYTK
GILD
LYV
META
MS
MU
ORCL
SAP
SMCI
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