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Friday, March 27, 2015 Weekly Market Recap.
This week’s news was dominated by a strong sell-off on Wall Street on Wednesday. The selling was indeed broad and touched almost all sectors. But by the end of the week most major indices have found support and are rebounding. Large caps bore the brunt of selling, while the small cap Russell 2000 dropped some, but is not yet close to the early March support. Market breadth remains mixed with large cap breadth trending lower, and the small cap breadth still in the positive territory. This is pointing to a possible sideways consolidation, provided the supports from early March hold. Charts are here |
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Among the leading sectors the biotech (IBB) and the semiconductors got hit very hard on Wednesday. Semiconductors (SMH) did generate a sell signal, but IBB did not. Both are rebounding strongly. Should the rebound in SMH continue, this may be a decent re-entry opportunity once the signal is triggered. IBB and SMH charts here
Interestingly, bonds (TLT) sold off on Wednesday together with the rest of the stock market and followed through with a drop on Thursday. I thought TLT broke support, but Friday it rebounded and closed above it. Bonds remain in a strong bull market and TLT is one of the market leaders among all ETF peers, not just other bond funds.
Gold extended its bear-market rally and closed above resistance around $1200. I think this rally has a bit more to run, but as I mentioned repeatedly in the past – once it rolls over it could be a very nice shorting opportunity.
Gold miners (GDX) underperformed gold, but managed to close the gap from early March gap down. Should gold extend its rally, gold miners are sure to follow. Again, as with gold, I would be looking to re-enter the market on the short side once the trigger is hit. Gold and gold miners charts here
Gold miners (GDX) underperformed gold, but managed to close the gap from early March gap down. Should gold extend its rally, gold miners are sure to follow. Again, as with gold, I would be looking to re-enter the market on the short side once the trigger is hit. Gold and gold miners charts here
West Texas Intermediate Crude Oil ($WTIC) rallied all week into resistance and failed again at the 50-day exponential moving average (EMA). While this set-up is not ideal for my taste, once the short trigger is hit, I may re-enter the SCO trade. Commodities and Oil charts here.
Our trigger for the short entry on the energy fund (XLE), did get generated and we re-entered the 3x Inverse Energy ETF (ERY). I believe this is a low-risk entry since it is very close its recent swing highs. I will be watching for XLE to re-test its mid-March lows.
We occasionally take positions in individual stocks if they look appealing. LULU (Lululemon) is one of those stocks that look good right now. LULU is very close to its recent swing low and just reported positive earnings, so at least I don't have to worry about that. We entered on Friday @ $64.32 and will be playing for at least a re-test of early March highs.
That’s it for this week’s market recap,
Best Regards and have another great trading week!
** Special Announcement**
We are weeks away from launching a stocks alert service. Please sign-up for our mailing list to be the first to take advantage of the discounted membership!
Alexander Berger (www.MasterChartsTrading.com)
Disclaimer, we have:
Open positions: TLT, SPY, IYR, XLU
New position: ERY, LULU
Closed position: SCO
Best Regards and have another great trading week!
** Special Announcement**
We are weeks away from launching a stocks alert service. Please sign-up for our mailing list to be the first to take advantage of the discounted membership!
Alexander Berger (www.MasterChartsTrading.com)
Disclaimer, we have:
Open positions: TLT, SPY, IYR, XLU
New position: ERY, LULU
Closed position: SCO
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