Traders were welcomed back from the long weekend with a pull back in equities, strength in bonds and continued weakness in oil. Today we perform our weekly Relative Strength Wednesday analysis. Tech is now the only sector outperforming the market according to the Chaikin Relative Strength comparison, and while it is out performing the power-bar ratio in tech is showing some fundamental weakness. On the chart above, "Over -" indicates a b power-bar ratio above that of the SPY, but below 1.0. Join us for our full analysis HERE
Happy Memorial Day Weekend! Here's the recording for this morning's Chaikin Power User trading meeting. With oil selling off HARD, we're not sure we'd take this OS Buy trade with real money. Kinda glad we're testing signals, though. Good to see how they stand up despite market conditions.
Join us for another Relative Strength Wednesday. Energy continues to show strength, as does Tech. As of late Basic materials are also starting to catch a bid. Follow us through our entire relative strength Wednesday analysis HERE
Join us for Macro-Monday! As energy continues to lead we are seeing some strength in a few new sectors. We also manage our on-going swing trade forward test. Join us HERE
...where the predictive properties sectpr Power-Bar differentials suggest where they're headed next. The interest rate sensitive Utility and Real Estate sectors moved lower along with bonds last week, and Power Bar differentials suggest weakness will continue.
Meanwhile, the commodity really continues to accelerate, with Basic Materials Power-bar Differentials pulling to even and ahead of the SPY. XLB has put in strong relative performance over the past 30 days. If we drill down further, XLB sub-sector component XME is now in the top 1/3 of the 22 US market sub-sectors. The miners have joined oil companies as benefactors of the commodity rally.
5% of the market cap weight of XME comes from Bullish rated Cleveland Cliffs, which appears to be undergoing a "personality change" at the moment (market and model in agreement as the long term Chaikin trend turns higher). These are the types of set-ups that have offered us long-running trends and high double digit returns in the past. We'll be looking for CLF to clear overbought conditions and then bust through resistance at $9 to mark our entry point.
We wrapped up the week managing swing and trend trades, powered by Chaikin Analytics. Here's where you can watch a recording of Friday morning's trading meeting.
All our trading is for the purpose of demonstrating the Chaikin Analytics platform only. This is not financial advice, nor are we licensed to provide such guidance. We have day jobs outside the financial services industry. The fact that we still have to work for a living is all the proof you need that while Chaikin Analytics may be wonderful tool for traders and investors, it doesn't work miracles. When you trade, you are taking risk and you can lose money.
Today we are managing our forward test. We celebrate our small losers and look for bigger winners. Listen HERE
It's Relative Strength Wednesday, powered by Chaikin. Video Here Traders have positioned against interest rate sensitive areas of the market like Utilities and and Real Estate, while moving money into Energy and Tech. The mostly fundamental weighted Chaikin Power-bar differentials show promise for Healthcare and Financials too. We'll look for Best of Best stocks in Industry Groups within those sectors showing relative strength in multiple timeframes for bullish trades if the market trend cooperates.
Macro-Monday, powered by Chaikin Analytics. US Small Caps and Commodities (ok, oil) top the relative performance chart, and the equity market has moved to neutral/positive potential status based on the market conditions we track. Today, we entered long and short trades because, while we're seeing broader sector participation in the current market snapback, it's by no means universal Video Here