Commodity pullback looks to extend in the short term

in Technical Strategy

Key Takeaways Tuesday finally produced some follow-through bounce, yet cannot be counted on to extend past 4525 given the current wave structure before turning back lower Commodities weakened Tuesday in a manner that could allow for additional near-term follow-through, particularly in precious metals and energy. Netflix after hours decline looks to require more selling pressure to reach support   Markets …

Treasuries still early to buy

in Technical Strategy

Key Takeaways Monday’s break to multi-day lows throws the rally prospects in doubt – Trends remain bearish and momentum is not oversold Treasury yields still look to push higher into late April as positioning doesn’t yet favor a pullback in yields Energy still a preferred area to favor and no real evidence of deterioration The attempted stabilization in US Equities …

Consumer Staples on the verge of more outperformance

in Technical Strategy

Key Takeaways Thursday’s decline leaves prices largely unchanged from this past Monday’s close, three days ago.  Thus, downtrends have not been arguably erased, even over the near-term Sector performance shows Consumer Staples starting to meaningfully strengthen 10-Year Treasury yields are pushing back above 2.80%, and Tech is underperforming The mild stabilization in recent days still hasn’t led to much bounce …

Coal stocks should strengthen further after breakout

in Technical Strategy

Key Takeaways Monday’s rally confirms a short-term Equity rally is underway into early next week Growth might rebound temporarily, but Value still looks compelling for 1H 2022 Coal stocks have recently broken out again and remain extraordinarily strong Short-term BULLISH– Equities look to be turning up on schedule, and further strength looks likely into next week before any stalling out …

Short-term bounce likely into next week for Stocks

in Technical Strategy

Key Takeaways Tuesday’s downside reversal nearing 50-61.8% retracement levels for SPX, QQQ. 10-Yr Treasury Note minus 3-month Treasuries have steepened, giving a different signal Bitcoin also looks to be close in bottoming; However, bounces sellable >44k into 4/18 Following a decline of seven of the last 10 trading sessions, Equities look to be close to short-term lows, and technically I’m …

What does WTI Crudes decline mean for Energy?

in Technical Strategy

Key Takeaways Monday’s decline brings prices closer to trading support at 50% retracement levels Treasury yields likely push higher to 3.00-3.25% in TNX into May Crude Oil’s decline looks temporary only and should lead to buying opportunities The pullback in S&P has now produced losses in six of the last nine trading sessions, with prices approaching the 50% retracement level …

Buy Pharma, & Medical Distributor stocks

April 7, 2022 in Technical Strategy

Key Takeaways SPX and QQQ look to be bottoming near initial support after recent weakness. Healthcare looks to be breaking back out vs SPX in relative terms. Pharmaceutical stocks, Managed Care and Healthcare Distributors look most attractive. The near-term market pullback should be close to completion in the short run and can allow for rallies into April expiration. While the …

Both US Equities and Bitcoin near temporary Support

April 6, 2022 in Technical Strategy

Key Takeaways SPX and QQQ look to be nearing initial support after recent weakness. Some of this week’s biggest areas of weakness- Transports and Semiconductor issues, are now closing in on “Make-or-Break” support which looks likely to hold on this retest. Implied volatility looks attractive to own on a 2-3 month basis after its sharp decline. The near-term market pullback …

Top Technical Shorts to consider

April 5, 2022 in Technical Strategy

Key Takeaways Monday’s follow-through decline has caused SPX to close at lowest since 3/24. Technology remains under pressure, and still early to expect meaningful snapback. TNX pushed up above last week’s highs, and still no meaningful evidence of a top. US stocks seem to be following the technical playbook and might weaken further into early next week before finding some …