Today’s sell off from the open was technical based. We broke several key Index levels. Most important was the was the SPY 200 day moving average which we closed below for the first time since the breakout. We stopped at the 21 day moving average and formed a Doji. The good thing about the Doji is that it allows us to set tight parameters. Doji’s are a candlestick bar the represent uncertainty. So breaking to the up or downside can give us a short indication on what direction we are going. With the massive rise in the 10 year bond to 2.6% we saw outflows from bonds and this could have led to inflows into beaten down tech. That is not what happened. Instead money flowed into pharmaceuticals, consumer staples and REITS . Some stocks such as LLY made all time highs today. Even the cigarette companies such as MO are setting up to breakout. We are seeing a shift from higher risk assets to safety and dividend yielding stocks. In regard to the QQQ we closed right on the 21 day moving average. The major difference between the two indexes is that there is no leadership in the Nasdaq. Semiconductors , software and biotech are all weak. The focal point continues to be energy names. Avoid small caps as they are most effected by rising interest rates. Its best to have a very short term out look until this settles down. There is too much uncertainty. Investments in oil names can come in as soon as there are peace talks. The best approach is too continually move your stops up. Jobless Claims are the next data point for the Fed and will be released at 8:30 am tomorrow. Let’s get to our charts!
Let’s Look at Our Indexes
Let’s Look at our Stocks
There are several new stock ideas in the video below.
Subscribe and turn on notifications. There is a new daily video after the market Monday through Thursday! It’s called the Top 5 in 5. It consists of the best five ideas for the next day and I condense it into 5 minutes. It’s loaded with actionable ideas. It’s worth your time. It is hyper specific and actionable. Tonight’s includes Longs and Shorts with entries and stops marked. When you subscribe turn on ALL notifications so you are notified of the daily Premarket live shows ,Top 10 Weekly Buy List and educational videos. Also, Once subscribed you will receive private content on YouTube make sure all notifications are turned on so you receive it. The video below is the Top 5 from tonight and focused on actionable ideas based upon the indexes and FED MINUTES today. Pay close attention to what is said about the 10 year, the semiconductor sector , and how its all connected to the SPY and QQQ.
As always all investment decisions need to be made by the individual. We all have different risk profiles. No two people trade the same. Understand the buy points, stop losses, trims are suggestions. You need to develop your own process. I am willing to help. If you have questions email me Arete@Aretetrading.net. For example, to stop losses, I like to see them close. That does not mean that fits everyone’s risk profile.
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