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.
There’s a lot to consider as we get into Q4. Yield curves, rate cuts, and the political backdrop, all while earnings start to come back into focus. Ultimately we should focus on the charts in front of us. Tonight we’ll review a few of my favorites along with the strategies to trade them.
For some traders, futures is a scary thing. For others, it’s the launch-pad to more and better trades. Here’s an example of the latter: Long Bonds and Long Home Construction ETF.
Some key oversold levels in the broader indices and heavily weighted sectors contributed, but the market is expecting J. Powell to cut this month and save the market, and for some progress with China next week… I am not holding my breath. Remember the upside will be the overbought resistance and double tops we just sold off from.
