In this version of our weekend market outlook we will cover yet another busy week of market action, trade setups, and changing dynamics for traders.
Below is a summary of what’s in the video below. Please feel free to comment or hit us up with any questions.
– After weakness from late last week into early this week, stocks got a boost and changed sentiment at the end of the week.
– Market Forecast study shows an overbought cluster. I discuss how a cluster is formed and why this particular cluster is actually a good sign for stocks.
– Seasonality review for the S&P 500 (NYSEARCA: SPY) heading into a key period in mid-August.
– Improved Market Forecast charts for NASDAQ (NASDAQ: QQQ) and Russell 2000 (NYSEARCA: IWM) after both indexes held key support levels this week. Russell 2000 has been in an extended consolidation after double-digit 3-month returns.
– Supporting technical charts validate the bullish posture but volatility finished the week near extreme lows.
– Two biggest news items today were jobs and tariffs -neither had a negative impact on U.S. stocks relative to foreign markets.
– Discussion of sector rotation with combination of strong dollar and bullish risk appetite.
– Today’s trade idea highlights a speculative trade on stock in hot sector that has earnings next week. Trade helps to avoid volatility risk and keeps risk small compared to profit potential.
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.