Market Outlook
There was no shortage of headlines last week as Oil and the conflict with Iran still dominates the markets attention. We also got no change on rates from the Fed meeting, which didn't really come as much of a surprise, but seller still came in once it was confirmed. The biggest event was the end of week sell off that sent the S&P breaking its 6 month support area of 650.
Now that the major market has broken and closed below that key support area. More than likely, we see lower price action in the coming weeks. But there is still a chance for some short term snap backs as the market is in oversold territory. We are offically in a pull back, as the market is more then 6% off all time highs. I would like to see us test correction terrority before really looking for longs. Across the board we are seeing weaknesses and hanging in cash has been an easy place to be lately. After scanning the S&P, Dow Jones and the Nasdaq names. Best I muster for finding set ups, were a handful of stocks all starting with the letter C, showing ok set ups at best. March in general tends to be a tough month overall for stocks. If we can continue to be patient throughout this potential correction coming, we will be poised from some great trading action once we get through the slow drop.
As long as Energy continues to climb, we should expect to see weakness broadly. Once we see this sector start to test that red trendline and break lower, that should coincide with the start of a turn in the market.
Right now as most sectors look like Materials as the clear breakout stages have broken and sectors are rolling over trying to find new pivot lows. This is a great time to just step aside. We are not hear to catch bottoms or tops as they always look so easy after the fact yet never in the moment.
On the tax side, with less then a month until your tax return is due, if you are still pushing it off or don't know where to start and need our help let me know as we are pumping out returns left and right during this slow market.
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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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
CART
CSCO
CRM
CYTK
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