Cloud computing has been hot for awhile, but when it started losing steam, it really started taking a dive. Let’s look at options to trade this to the downside.
We are at a key decision at 2950 in the SPX, and so far we haven’t been able to get through this area with momentum. Let’s look at a couple key sectors and industry groups, such as SMH, SKYY, NDX, and more, for specific trades.
This is the foundation of my watchlist building as well as how I ascertain what a broader average or sector may do next. I walk you through the Dow in this example and the setups that look best after today’s action.
Today’s action is very bearish, and while the broader averages do not reflect enough bearishness to justify a downtrend … certain sectors and stocks do. Here is what is on my Radar.
October opened with a bit of a bearish tone, but there’s a chance that too many traders are leaning to the short side and that could fuel the next leg higher. If it does, look for semis to participate in the rally. Our current daily signal could be an excellent trigger for that.
