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Rotation

Stocks To Watch This WeekThere are no certainties in the stock market. These names have shown good relative strength and accumulation volume . This may give good risk/reward entries on some of the best names. Some of these charts still need to confirm their price action. This video is my watchlist. Most of these names are at or near all time highs or multi year highs. There are 28 total stocks on this list with 0 short squeeze candidates . Many of these have IPO'd in the last few years and still have a growth story ahead of them. Know your time frame and risk tolerance. Know your earnings dates! I go through these quickly so grab a pencil and paper and jot down the names that look interesting to you and then make the trade your own. Good Luck!
NYSE:BELong
by Jtacher51
2
ETH - High Probability For Being In A Bear MarketETH and BTC had a phenomenal run this cycle. From $81 to over $4800 which is more than 5800% gain. I talked more in detail of why i think btc is in a bear market so for that go look about my previous idea about ETH. I expect the rotation of the money into other alts not only from BTC but also from ETH. Because of that BTC and ETH will still go up with the rest of the market, but only doing an ABC retracement back to the .702 fib. retr. lvl. which sits around $4k. Think of those two (BTC,ETH) as a bucket of water that has a hole in it so as water (money) is flowing in it also goes out at the same time even more so than it flows in. I am not a financial advisor so non of this should be taken as a financial advise. Be well. BINANCE:ETHUSDT
by CR35
DASH Waiting For Money To Flow In - 1100% Just To Its 2018 ATHDASH is one of those forgotten coins, or so it seems like. I remember being above 1k in 2018. Even though it has not had the chance for a rally yet, i believe it will happen eventually as there is a lot of money in BTC and ETH to be rotated out of into the laggers enclouding DASH. It has 1100% just to its previous ATH. I specifically turned on linear scale for you to see just how undervalued this asset is. I am not a financial advisor so non of this shoud be taken as a financial advise. Be Well. KRAKEN:DASHUSD
KRAKEN:DASHUSDLong
by CR35
7
XRP What To Expect In The "Near" FutureXRP, like other 80% of the alts did not have its bull run yet. Even though BTC may very well be in the bear market, that does NOT mean that alts are. What we now have to wait is for BTC to provide some type of a short small rally just to re-test its prior area of capitulation (55-58k). If this happens i expect alts to go with it, but.... there is still more down to go with BTC after that re-test. As BTC starts to capitulate again, expect the XRP and other alts to do the same in the short term. XRP may even set a new low but i don't expect it to fall below $0.50 as it is simply to strong of a support. Then as BTC starts to slowly recover expect the BIG rotation of the money into smaller caps and laggers like XRP. I've lived through 2017 XRP rally and i remember that XRP can trade sideways for REALY LONG time, but when it finally goes it goes really FAST, really HIGH. After BTC capitulates xrp price should recover VERY quickly, setting a new higher local high (yellow arrow) then next stop is 2018 ATH. From there we sould see first major profit take and the price to re-test $1.5-2 area that held us down for ages (yellow box). Last leg up should get us to $8-12 and this is where a will personally exit the market, regardless of the news (green box). $9-12 for xrp is where a full 4.236 fib. ext. level is sitting at. Level 0 is low and level 0.236 is the top of the rally prior to capitulation from Sep. 2018. Price will of course move differently. What i've tried to present with it is where to expect major resistence and support to come in or get retested. I am not a financial advisor so non of this should be taken as a financial advise. BINANCE:XRPUSDT
by CR35
5
Omicron fear?A thanksgiving not exactly calm, that of 2021, ruined by a really black Friday on the financial markets. Omicron, the name of the new variant, is frightening. We know that markets are driven by two main feelings, fear and euphoria. A nd it is my, our job, as traders, to stay away from both of these feelings, which do nothing but make us lose money and do the exact opposite of what should be done. Those who know me know that I am absolutely a realistic person, I try to analyze the situation, without ever panicking at the moment, so I brilliantly overcome the coronavirus crisis, buying when everyone was selling and enduring even important drawdowns, only to be repaid. Now, I’m certainly not saying that we are dealing with another V shape from -30% as in 2020, also because, those who have a bit of intelligence know that, given that we are talking about viruses, we will always have in front of us. of mutations, is its nature. We must accept that we will have to live with it, using the weapons that science provides us. Consequently, next week, considering that while I am writing to you news continues to arrive on the appearance of the variant in every European state, it is very likely that fear will continue to prevail, causing further declines, which by the way, as I have been writing for a while of time, they would be healthy. All right but, when to buy? And above all what? The crux of the matter is the tightness of the vaccines to t he Omicron variant. If, as has happened with the variants that have appeared so far, the protection is solid, then we could see a correction that could not go beyond 10-15% creating buying opportunities for a short Christmas rally. If, on the other hand, vaccines should prove ineffective, rest assured that volatility will rise and the correction will be more marked. Never as in these moments, you have to be calm and wait for the news. As for the markets, I believe we will see a sudden rotation in tech stocks, digital payments, and video games. As well as obviously social networks and e-commerce. Beware of pharmaceuticals, because they are already very inflated, except perhaps Moderna, which has just returned from an important pull-bak, and Novavax which is in the pipeline with a new vaccine. Those who follow me know that I am already positioned on companies such as Activision, Visa, Square, Amazon and Facebook (Meta). Accumulations could arrive on these stocks if they suffer a decline caused by a general sell-off. If we talk about accumulation for the long term, it is precisely the companies that work in tourism and which are related to oil, those that could suffer the greatest discounts and consequently the best purchasing opportunities. I’m talking about Airbnb, a company I strongly believe in, where I have an excellent average purchase price, and I will certainly buy more shares. Attention also to airlines such as Delta and American Airlines and obviously attention to ETCs on oil because a significant drop would create further buying opportunities on a commodity that has given me (and I hope you too) 100% earnings in 2021. Possible increases in gold in the medium to long term, both from seasonality and obviously as a safe haven asset, even if during the first appearance of the covid, this was not exactly the case. The resilience of cryptocurrencies should also be verified. Absent extremely volatile, absolutely not to be considered a safe-haven asset, has the undoubted advantage of being decorrelated from the numerous problems that can afflict traditional financial markets. There may also be a quick rotation here which could cause significant rises. I greet you and I wish you a happy Sunday, quoting Warren Buffett because it is the wise men that we must look at in moments of emotion: “Be greedy when others are afraid and be afraid when others are greedy” Happy trading and stay safe. Lazy Bull DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
AMEX:SPY
by LazyBull5
7
The bottom for SmallCaps might be inWe might be in the midst of a trend reversal for a rotation that has been going on since March: Megacaps and SuperLargeCaps have been going higher, while everything from SmallLargeCaps to NanoCaps has been on the decline. We've had many days recently where indexes seemed to go higher when the majority of stocks seemed to decline. That was, because we've seen huge increases in MegaCaps and SuperLargeCap companies recently, which have used so much money on the market that many, if not most SmallCaps have litterally have "their blood drained". Analyzing the 2,5Y Forward P/E and P/S rates of MSFT & AAPL and adding a little bit bonus for small debt/equity(MSFT) and a little malus for high debt/equity(AAPL) I have come to the conclusion that they're trading roughly 100% over market average valuation for this kind of analysis. Now, considering the fact, that both these FAANG giants are quite expensive at current valuations and seeing most SmallCaps trading significantly below market averages one starts to wonder when a trend change might be in. The answer is: probably now. Or soon. Subtracting Nasdaq100 Index( OANDA:NAS100USD ) (that tracks only the top100 companies of the NASDAQ exchange) from the Nasdaq Composite Index(that includes all Nasdaq listed companies) You're left with a quite unique picture: How Non-Index-Nasdaq-Companies are trading vs Nasdaq100 companies. This, in theory, can be mostly translated into how SmallCaps are faring vs MegaCaps and SuperLargeCaps. As you can see, we have been on a decline for months, with quite a consistent trend resistance (the yellow line). We're also trading near 03/2020 (Corona crash) & 09/2020 (Major Tech correction) lows. We seem to have broken the Trend resistance (but better wait for real confirmation on Monday/Tuesday) All of these facts lead me to believe the bottom for SmallCaps is in and MegaCaps and SuperLargeCaps are ahead of a major correction. Let me know your thoughts! :)
TVC:IXICLong
by The_Silen
2
Bullish Triangle on the Russell 2000The Russell 2000 small cap index led the market between November and March. Now following a healthy period of digestion, it may be coming back to life. The main pattern on today’s chart is the series of higher lows since July 19. Combined with the resistance line around the 100-day simple moving average (SMA), that’s a bullish ascending triangle. Next, the market internals. TradeStation data shows that 910 members of the Russell 2000 are now above their 50-day SMAs, more than tripling in less than a month. The same measure for the Nadaq-100 has slipped from about 73 to 64 in the same period. RUT has also been finding support this week at its 8- and 21-day exponential moving averages (EMA). A bullish cross is just now occurring on those two lines, which could draw trend followers if it persists. (It also gives a potential risk-management zone.) Finally, MACD has been steadily rising -- unlike the Nasdaq-100 . TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
TVC:RUTLong
by TradeStation
Market Relative StrengthHey guys, -- thought I would share some of the stuff I look at on a weekly basis to understand where the market is at. The Main Chart is Sectors Super Strength This Chart shows normalized relative percentage sector strength since 24 June The pink line Shows the S&P500 We can see that Tech and Gold has been doing well since 25 Jun VS other sectors while materials and industrials are lagging Sectors above 20 Moving Average Chart Here we can see which sectors are above their moving averages -- red lines means below the moving average, the green line above moving average The CAPS Chart Shows the different market caps If all CAPS are red, then I won't trade long, and moe up stops. If all CAPS are green, then I'll go heavy on long trades. We can see that the large caps are pulling the market forward, but small and mid-caps have been pulling it down. Typically Large caps are slow to respond, and small progressive corrections and led by small caps, then mid-caps, and finally large caps Small Pullbacks like this are normal, and a sign of a healthy functioning market with steady market participation Market Expectancy Chart TQQQ Tech ticker: from the image below we can see that tech is overextended quite a bit, so it's due for a small correction back to its normally expected trading bands -- white striped bands With tech being such a big part of the market these days, my focus is not to take new longs, but to take profits, move stops up and look at short trades trading sytems The Table Sector Performance chart Shows how each sector has performed over the last 10 days I use this to check which sectors are weak, versus which sectors are strong This shows me which sectors I should avoid, and which sectors I should focus on If too many sectors are red, then it means that I need to pay attention for a possible market correction When LOOKING at the market fundamentals / market structure / market internals I look at: Where is the market now? Is the market over-etended? Which sectors are weak VS strong? Where the NASDAQ and SPY trading within their expected bands? -- I don't use log charts, with expectancy bands, because they don't work on log charts. Is there anything else that you guys find useful gauging the overall market?
CME_MINI:ES1!
by HermanBrummer
USDJPY possible rotation from SR zone & POC USDJPY created a new yearly high on 111.658 and a lot of new investors came into long poitions. Ater that the price made crash and came back under the 110.966 to SR zone. I will observe the price and find ideal spot for short trade. I think price will go down on wednesday this week. Fibonnaci 0.5 is almost same as the POC level there's lot of acumulated value. 0.5 is a level where are mostly created ABCD gartley patterns. Price actually made a breakthrough a bullmarket symmetry and now doing pullback to it. Price is into a SR zone and currently under previous yearly high from 31th March. There are lot of reasons why i want to do a short trade here but in total there's still no action from price and price is not there yet, thats why i wrote ? symbol there. So currently i will just wait and observe, it's in strong bullmarket and rotation is not confirmed, but if price will give some meaningful signal im in it. Wish you lot of succsess, enjoy!
by SpilakJ
Look at all these sector rotations! Welcome to the new regimeRecently we've seen a significant "rotation" in markets toward large cap tech and defensives, and away from small caps, financials, and transportation. In this post, I will describe the rotation through a series of charts, and I will also suggest some explanations for what's going on. The long and short of it is that I think we've just witnessed a regime change, and markets are going to look very different for the rest of the year. What's up: ecommerce, software, automation After a long period of underperformance early this year, the software sector made a bullish trendline break vs. the S&P 500 at the end of May, and has been outperforming ever since: Likewise the Global X Robotics & Artificial Intelligence ETF: And the Amplify Online Retail ETF: Note that the online retail ETF is outperforming despite recent weak retail sales numbers. What's down: airlines, retail, materials While tech names have been breaking out upwards, we've seen downward breakouts in several other sectors that outperformed early this year. This includes most of the winners of the "reopening" trade, including airlines: The "consumer discretionary" or retail sector has also rolled over, obviously with the exception of ecommerce: As retail rolls over, we're also seeing some very bearish action in the materials sector. In addition to a sharp selloff in lumber, we also saw iron ore and gold take big dumps in the last few days. The materials sector has broken its uptrend relative to the S&P: What's going on: weak demand and the Delta variant Partly tech may be outperforming because of falling bond yields. Tech has been inversely correlated with interest rates since early this year. But I think a couple other factors are also in play. The economic data lately have been very disappointing, with weak retail sales, weak durable goods orders, and weak housing starts. A lot of consumers now say they are hesitant to buy a house, and initial unemployment claims ticked up significantly this week. The ECRI leading weekly index has been in a downward slide since mid-March. All of this points to weakening consumer demand, which I think is why you see the retail and materials sectors falling so hard. The drop-off in demand is partly due to inflated prices, and partly due to the elimination of expanded unemployment benefits. Having already spent their stimulus checks, consumers now simply have less money to spend. There's another factor, too, which is Covid-19 variants. The variant known as "Delta" has been ravaging India and spreading fast in the rest of the world. This variant is highly contagious and has been described as "Covid-19 on steroids." Meanwhile, the vaccine-resistant variants known as "Alpha" and "Beta" have been spreading in Europe and the United States. Alpha is now the predominant strain in the US, having increased from 12% of cases to 37% of cases in the last 4 weeks. With variants a growing threat, it's possible that some traders are hedging against a "reclosing" economy, or at least the possibility that consumers might travel less. Another noteworthy shift: bonds over financials Also note that financials have broken their relative uptrend, with a big drop today: The selloff in financials was a reaction to the upward breakout in bonds: It appears that we're headed into a new cycle of monetary stimulus and low interest rates, which means lower yields for banks. Oddly, the US dollar also broke out upward today. I'm unsure what that's about, or how it fits in with the price action in bonds. Normally higher bonds and higher inflation would be bearish for the dollar. What's threatened: aerospace, energy, and transportation The aerospace, energy, and transportation sectors are so far still in an uptrend, although all three exhibited some weakness today. You'd think that aerospace would fall along with airlines, but remember that the aerospace sector also includes defense, and we are increasingly under threat from China. The transportation sector includes passenger travel like airlines, but it also includes shipping companies like UPS and FedEx. So ecommerce strength may offer some support, but this could still fall out of its uptrend soon. The energy sector trades somewhat in sympathy with transportation, so transportation weakness could bode ill for energy. Energy is also inversely correlated with the US dollar, so today's upward dollar breakout could cause pain for energy. However, this sector is currently being supported by oil shortages and hype around the possibility that oil will reach $100/barrel. Keep an eye on defensives, real estate, and biotech Investors seem to be getting more and more defensive. That includes taking refuge in large, high-quality names. Large caps underperformed early this year, but that has changed in June, with the cap-weighted S&P 500 having broken its downtrend relative to the equal-weighted index: It also looks like several defensive sectors are basing relative to the index. The relatively undervalued communications sector may benefit from the bipartisan infrastructure bill that's now near to passing in the Senate: We're also seeing consumer staples, utilities, and healthcare find some support, though no big upward breakouts yet: Surprisingly, real estate and biotech are also both seeing bullish movement relative to the S&P 500, so these are sectors to watch. Both are relatively undervalued due to having underperformed for a long time:
AMEX:JETSShort
by ChristopherCarrollSmith
8
Cloud-computing vs crude oil: Lessons in a Dramatic ChartOne of the biggest events in the history of the Dow Jones Industrial Average happened last August when Salesforce.com replaced Exxon Mobil as an index member. A 21-year software company elbowed out a transnational giant tracing its origins to John D. Rockefeller and the dawn of modern capitalism. Despite the stunning endorsement, things haven’t worked out so well for CRM since then. Its shares peaked above $280 one week later and then turned lower. (That was a giddy moment for growth stocks because Apple and Tesla had just split their shares.) Additionally, TradeStation analytics show that CRM has gone 172 sessions without a new 52-week high. That’s the longest for any member of the Dow Jones Industrial Average. XOM, in contrast, hit a new high yesterday. It’s a good lesson in froth and exuberance: Just when it seems things can never go wrong, it’s often a sign of the top. Other adages that could apply are "buy the rumor, sell the news," or "be fearful when others are greedy." The chart above compares CRM to XOM since they traded places in the Dow. Notice how XOM lagged for a couple more months but then ripped higher after November 9’s vaccine news ignited the reopening trade. Switching to CRM's candlestick chart below, some challenging patterns may have emerged. The 50-day simple moving average (SMA) slid beneath the 200-day SMA on March 22, resulting in a “death cross.” Next is the descending channel in place since the peak in early September. If that trend continues, it could imply move toward $180. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Editors' picks
NYSE:CRM
by TradeStation
15
A Study of Sector Rotation during year 2021 [Market Rotation]Sector Rotation Analysis starting from Jan 2021 While 2020 was a wonderful year for many investors, 2021 has been riddled with changes in the stock market thus far. In this analysis, I compared multiple ETFs that track different specific sectors in the market in order to visualize these changes. The periods and commentary are broken down month by month with the sector leaders and losers of that month. A little about Sector Rotation: Sector rotation in the market tends to follow the stages of business cycle—recovery, expansion, slowdown and recession. Recovery During the Recovery stage, feds will keep interest rates low while long-term rates rise. The material, financial, and industrial sector tends to take the lead during this phase. Expansion During the Expansion stage, the economy will expand at a stable pace while fed take a neutral stance on rates but credit conditions will ease. Again, long-term rates increase. Financials, Industrials, Technology, and Consumer Discretionary sectors will excel in this phase. Slowdown During the Slowdown phase, the economy peaks then starts to stagnate as inflation grows. At this point, credit conditions will be strained and stocks may fall. The sectors that do best in this phase are Consumer Staples, Energy, Health Care, and Materials. Recession During a Recession, the economy shrinks and feds cut rates. Long term rates decrease. Healthcare, Utilities, and Consumer Staples will do best in this phase. 2021 Sector Rotation Commentary During January , we tested all-time highs for the most part. Several events that occurred were the Senate run-off, the inauguration of President Joe Biden, and even the GameStop Frenzy. In world news, the number of Covid-19 cases were spiking and investors were optimistic that the vaccine would become available and help open the economy back up. Chair of the Federal Reserve, Powell pledged that the central bank will leave interest rates near zero. During early January, Energy was king of the sectors but mid-way through was overthrown by Real Estate and Communication Services. The sector losers of January were Energy, Financials, and Materials. February kicked off Earnings Season and we saw higher-than-anticipated numbers with a lot of companies beating Earnings expectations. One of the main events that occurred during February was the Treasury Yield started increasing significantly, this sent growth and tech stocks plummeting down (as they would be impacted more than established companies with well-balanced sheets and already sustainable revenue). A lot of low to mid cap stocks were significantly impacted by the rising yields and even up to today as I am writing this, still has not recover fully ($FUBO, $NIO, $PLTR, $SPCE). We saw a rotation from growth to value stocks. The Energy sector took reign over Real Estate while Communication Services rose steadily too. The sector losers of February were Materials, Health Care, and Consumer Staples sectors. Early March was the bottom of the sell-off that started towards the middle of February. Some notable events were the Suez Canal mishap, several banks getting slapped with margin calls worth Millions of dollars due to exposure from Archegos, and the $1.9 Stimulus was finally passed! The stimulus benefited the banks, airlines, and other consumer discretionary stocks so we saw a slight rally in cause of the news. Real Estate, Energy, and Finance continue to lead amongst the other sectors while Technology, Consumer Staples, and Healthcare continued to remain sector losers. It's Early May now and the market is starting to look both frothy and toppy. You can see a slight decline/curve from all sectors in the most recent period. Earnings Season is still going on but we saw many companies that met or exceeded expectations, sell-off after reporting earnings. We have also seen an increase in the VIX (volatility indicator) as a reaction on several news such as President Joe Biden's proposal to increase tax on corporations as well as the wealthy. The sector leaders today are (1) Energy, (2) Financials, and (3) Real Estate while the Sector Loser goes to Technology. I hope this analysis is able to give insight on the current market in regards to different sectors. If there's one thing that is apparent in this analysis, it is that the rotation from growth stocks to value stocks continue. While Tech stocks were a favorite during the Covid-19 lockdown, Tech has been overthrown in favor of everyday necessities like Energy and Financials this year. -Natalie Garces, OptionsSwing Analyst
AMEX:SPY
by optionsswing
6
Squeeze Incoming; 2.5 dtc A comp of $T and $VZ's stock. Similar setups, with VZ blazing ahead. $T seems a day behind. You can never be confident when playing short-term moves, but you can see the squeeze indicator Ppppin off prior to VZs move and it's doing it for T now. The rotation favors it, and it looks like some shorts might not have closed fast enough. www.marketbeat.com It's enough to place a small bet upon. I'm not a squeeze-hunter, but when it seems to be happening it's good to take a small position.
NYSE:TLong
by PreferredStonk