Cycle Highs — Are They Really A Big Deal?
There are few trading situations worse than being on the wrong side of a cycle move and not even understanding what it is and why it’s destroying your positions.
There are few trading situations worse than being on the wrong side of a cycle move and not even understanding what it is and why it’s destroying your positions.
The Financials ETF, XLF, has been a market I’ve watched closely since the impact of financials affects the S&P, Russell, and Dow. The 2nd round of the bank stress test was not too kind to Goldman (GS) and Morgan (MS), that is, until the FOMC stepped in.
The holiday affected week will impact what I think follow-through will be until Thursday, but the late-day XLF rally did shake things up. I am still bullish equities, with an emphasis on NASDAQ and Russell, but mid-term elections and tariff rhetoric could be changing and that’s going to be good for buyers. I am also bullish energies but the best play may not be what you think … here’s what I have my eye on.
It’s critical that you flip out these calls tomorrow and don’t wait; here’s why.
Bigger Picture and Smaller Picture, Here’s What I’m Doing Right now.
In tonight’s free video, we add two names that might be worth building into during the shortened holiday week, along with several others we’ve been following and their current performance.
Indexes played into our hand fairly well today, but that doesn’t mean it was easy or obvious. More than anything, it required patience and a good understanding of the setup to catch the move into the close. Let’s review that, along with the outlook into next week and a few new earnings picks.
End of week, end of month, end of quarter, the market has a lot to think about next week.