Trading the best stocks in strong sectors and in industry groups that are "in favor" is a tried and true investment approach. With Chaikin Analytics predictive Power Gauge rating, we may be able to take that concept one step further and actually predict what parts of the market will outperform 3-6 months from now, giving us an incredible edge! It's like knowing sector rotation before it actually happens!
Here's a look (below) at how sectors are trending now based on the Chaikin Analytics Bull:Bear Ratio. We use this analysis to anticipate relative strength and sector rotation in the coming 3-6 month period. We'll look for bullish trades in sectors with ratios higher than the market (SPY) on the assumption that we'll benefit from future outperformance..
Lately, defensive sectors Utilities (XLU) and Healthcare (XLV) have been showing persistent fundamental and technical strength. That's not a great sign for future stock market performance, especially when high beta sectors like Materials (XLB) and Industrials (XLI) have fallen below the SPY. Financials may be getting a boost in anticipation of lower bond prices and higher interest rates (though we've "seen this movie before"). Energy (XLE) is getting a boost from geo-political instability and higher oil prices. These are the parts of the market that will likely offer the most attractive returns in the next 60 - 90 day, and it's where we'll look for bullish trades.
Watch our video for more inter-market analysis using Chaikin Analytics. (best on Chrome)
Chaikin Power User Trading Room for Monday June 23rd: Our Jaw Drops As We Check ETF Relative Strength Trading Signals.
We review Relative Strength Buy and Breakout signals then consider a trade signal on the ETF PPH. Chaikin Analytics gives you the tools to measure both technical AND fundamental factors on ETF's, then time the entry. I can't think of another modeling tool that does this. Wait 'til you see how profitable these signals have been in the recent past. Did you sign up for your free trial yet, so you can start trading with us?
It takes me longer to explain, than actually do. How I find a bullish entry in just a few clicks using Chaikin' Analytics. Grab a free trial here.
With the right bottom line information at your finger tips, it's actually hard to lose this game. Chaikin Analytics makes it easy and time efficient to make systematic market gains. We have a bearish trade idea on KB Homes in this video, as well as our Utility stock pick for tomorrow. In this video:
Bear Put Spread Pick
My One-On-One Option Education Session
With the S&P overbought/oversold oscillator at a high point, and price pressed firmly against the upper Chaikin Volatility band, the market uptrend is likely to pause or pull back Here's how I make income while waiting for the market to clear overbought technical conditions. It's a high probability bearish trade on Yahoo. We also demo in the video a debit call spread on Time Warner. Don't be afraid options! With high probability spread trading and the Chaikin Analytics App at your back, you have a significant edge over other market participants. When you get tired of watching me make money (results here), grab a free trial.
With the market overbought and pressing against the upper volatility band, we expect a pause at the very least and perhaps a pullback. Sold spreads are bet that the market won't go up any more for a little while.
Today I review current market conditions, our portfolio performance and a trade on Tata Motors. It's an option spread trade. This is an advanced strategy I introduce in a free one on one session for any new Chaikin Analytics subscriber who signs up through this website. Start with a free trial.
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