Mid-Week Market Outlook: Bullish But Traders Should Be Picky

Our mid-week market outlook video covers a lot of ground, looking at several interesting trade setups.

Below is a summary of the video. Please feel free to comment or hit us up with any questions.

The S&P 500 and NASDAQ Composite hit all-time highs. But today was a stalling day as investors await more information regarding a potential trade deal with Canada. Let’s review:

–  All four major U.S. equity indices have strongly bullish intermediate postures

–  The U.S. Dollar now has a bearish intermediate posture, which is helping to support some international equity markets

–  Treasury yields had an outsized day as the 10-year surged to a current yield of 2.88%

–  As expected, long government bonds and utility stocks were down, but REITs had a strong day and junk bonds finished flat

–  Health Care, Technology, Discretionary, Industrials, and Real Estate sector ETF charts continue to look strong

–  The Sector Selector tool shows strength in the Consumer Discretionary sector from the specific perspective of individual components within the sector hitting new 52-week highs

–  The trade application example highlighted in today’s video featured selling a bull put spread on VF Corp (VFC), which recently reported a major corporate reorganization and its stock has shown a tendency to respect the $91.00 level in recent weeks

 

Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.

Twitter:  @BrandonVanZee and @Market_Scholars 

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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