Interest rate sensitive stocks reacted intensely to this week's Fed announcement, which departed from using the word "accommodative" for the first time in a decade. Interest rates are going higher on the short end of the yield curve, so investors sold real estate, financials and utilities, which tend to act like bonds and are held for yield during bull market advances. We thought it important to revisit briefly market and sector relative strength and update RS Wednesday's look. Friday Trading Meeting Video - Here
Healthcare sector XLV suddenly the only Chaikin Classic Bull, sporting steroidal Powerbar differentials and positive returns in all three key time frames for directional bullish trading.
Relative Strength Wednesday.
We are traveling this week and unable to record our weekly Relative Strength Wednesday analysis. WE believe it to be an important part of our weekly analysis, and wanted it to share it with you. You can always find this and our other weekly analysis on the MARKET CONDITIONS page at Chaikinpoweruser.com.
Health care remains the leader in our weekly analysis. Only Financials and Industrials are now outperforming the SPY on the 3 month look back.
The bugle continues to widen on our weekly sector trend chart. Industrials showing strength this week and utilities showing resilience. For the first time we have added China's FXI to our relative strength macro analysis. Join us for our complete Macro-Monday analysis. HERE
In Thursday's trading meeting, we managed our bearish swing trades. Video here.And below. In Friday's trading meeting, we managed bullish swing trades. That video is here.
Relative Strength Wednesday
Healthcare (XLV) remains the strongest sector in our Relative Strength analysis, this week we are seeing signs weakness in Utilities(XLU), which makes sense alongside the move in bonds. We are also seeing industrials (XLI) show strength in spite of the continuing trade rhetoric. Join us for our complete Relative Strength Wednesday meeting HERE
Video Here. Posting our Macro-Monday trading meeting a little late. Other than the China trade war whipsaw of the past 24 hours, the story doesn't change much. We put on some bullish trend and swing trades yesterday as well. The Power Bar data on $SPY has been updated to reflect yesterday's trading action. Go to market conditions.
The Bull / Bear ratio has improved slightly following yesterdays move higher. Today we run our bullish screeners to find a bullish Chaikin entry signal in the sector that continues to out perform on multiple time frames. We also manage our existing bearish portfolio. Join us HERE
Today, we managed bullish swing trades. Meeting Video here.
Relative Strength Wednesday
Our relative Strength Wednesday analysis once again shows Healthcare as the strongest sector outperforming the S&P in the three timeframes we measure as well as a strong forecast, based on the Bull / Bear ratio. Despite the recent move in interest rates, utilities remain attractive. The S&P has reached oversold, testing previous resistance and may be setting up for a bounce. Has Santa Clause came a bit early this year? Join us HERE
Macro Monday Trading Meeting (Here). Despite recent market pullback and slight uptick in volatility, the US remains the most attractive equity market based on relative strength comparisons to developed and emerging market economies.
Tuesday's SPY Powerbar ratio remains flat, and price continues to pull back, using January highs as possible area support. If the breakout doesn't hold, we'd expect a pullback to the diagonal trendline established after the winter correction. With price above the long term Chaikin trend and the pullback occuring into persistent, though weakening positive money flow, even an intermediate correction should end in a Santa Claus rally that sends prices higher.