5. My Secret Weapon: The Power Gauge Bull - Bear Ratio Trend Confirms Recent Downward Price Action
- Ninety S&P 500 stocks have a BULLISH or VERY BULLISH Power Gauge rating are outweighed by 110 BEARISH or VERY BEARISH rated equities.
- Fundamentals drive the Power Gauge ratings of each stock in the S&P 500. So weakening aggregate Power Gauge ratings confirm technical damage to the market's bull trend this week.
6. Sector Strength: Healthcare, Tech, Financials and Industrials
- Healthcare, Tech, Financials and Industrials are the ones with most bullish potential. But ratios are much lower than they were a few weeks ago.
- For bullish trades: I will look for the strongest industry groups within each sector, then find stocks with the highest Power Gauge rating within those industry groups. I'll pull the trigger when the stocks are oversold and at support. Until the market starts trending, I will trade a shorter time frame, with a price target and put on half my normal risk for directional trades.
- We can look at weak sectors, weak industry groups, Very Bearish stocks at resistance and oversold to trade bearishly over short time frames. Same deal: price targets and half the normal risk.