Since the initial shock of the pandemic on the markets, we have been mostly on the sidelines. The foremost disadvantage to trend trading is, you are never going to pick tops or bottoms. That said, we are now finding opportunities that meet our rules for entry, we just hope we are not about to get whipsawed as the market as made an incredible, unlikely, unexpected move. The reassuring news is that todays ETF purchases mirror what our Relative Strength Wednesday have been suggesting for the past several weeks, Tech and Healthcare are where the strength is. Watch todays video to see how we use Chaikin Analytics and our own rules to trade a simulated ETF portfolio.
relative strength wednesday
Relative Strength Wednesday continues to show tech and healthcare are the areas of relative strength, but discretionary and materials starting to make a move. Watch today's video to see how we use Chaikin Analytics to gauge relative strength in the market.
New: Sector and sub-sector group tracker using a new relative strength indicator called RSMK. ETF's are ranked based on their most recent relative performance to SPY but trended over up to a 200 day lookback period. So you can see how relative strength rank has changed for each ETF over time. RSMK lookback period ranges from 5 to 200 days in the past. Price of each underlying ETF is compared to the SPY in each time-frame. You can see major changes in relative strength rank over time, like XES that seems to be recovering along with the price of oil, along with previous outpeformers that may be cooling off a tad, like semi-conductors.
relative strength wednesday
Our Relative Strength Wednesday analysis continues to show a narrow market, led by technology and healthcare. Meanwhile, real estate, energy and financials look rather bleak. The narrow breadth of the market, along with a struggling bull / bear ratio leads us to a cautious market posture.
Trade Idea - Covered call on Steroids
Very bullish and oversold $INTC is in top performing sector (XLK) and sub-sector (SMH), with improving money flow and in a near-term sideways consolidation. We bought an in the money August call and reduced cost basis by selling an OTM June call. Pretty good return on buying power from a "covered call" standpoint with the opportunity to roll once or twice if INTC takes a while to breakout. . Watch today's video to learn more.
Today we managed our Country Level 1 & Country Level 2 holdings, as well as Macro ETFs. We only held one position, $QQQ. Not only did Q's not meet liquidation rules (obviously) we we're able to add to that position as well as our MAcro positions in $TLT $IEF and $GLD.
Relative strength wednesday
This weeks Relative Strength Wednesday looks a lot last the last few. Of the SPY sectors, healthcare, tech and communications are the outperformers. A few surprises this week, namely energy, having rallied off extreme lows. Also, the strength we saw last week in industrials quickly dissipated. Financials are also struggling here, low rates and expected defaults are likely headwinds. Watch todays video to see how we use the Chaikin Analytics platform to find Relative Strength in the market.