Since Wednesday was PI day (3.14), I thought I might update my PI trade article, says Dave Landry, f...
Short-Term Traders: Focus on Energy, Materials, Financials, Miners
06/27/2017 2:51 am EST
While markets hover near all-time highs, it’s mandatory for us to pick the spots that have a higher probability to out-perform through Q2 earnings season asserts Ziad Jasani, of the Independent Investor Institute, Toronto, in his weekly Trader video.
Short-term traders in the S&P 500 are better served in Energy, Materials, Financials, and Miners this week.
The S&P 500 remains in a tight consolidation range (2,440-2,430), after poking out to new all-time highs last week (2,453.82) = Bulls still in control of the tape.
Is a foundation for new highs being built or are we seeing the calm before the storm? With Technology and Energy currently bouncing, and with Financials readying for one, the risks to the down-side come from Healthcare (short-term expensive), and Defensives this week (sensitive to yields rising) which are unlikely to bring the S&P 500 back to 2,400 or lower.
However, a closing value this week below 2,430 would imply we are starting a pull-back (-3% to -5%). If we do close the week above minor resistance at 2,454-2,446 target levels would be 2,471 and then 2,508 (1 and 2 Std Error Marks on 52 week routines).
Mid-To-Longer-Term investors don’t have a Sell decision this week unless the S&P 500 breaks below 2,400.
While markets hover near all-time highs, it’s mandatory for us to pick the spots that have a higher probability to out-perform through Q2 earnings season: Technology, Energy, Industrials, and potentially Healthcare, after we see a pull-back in the space.
Shorter-term, we continue to game swing-low-formations in Energy, Financials, Materials, and Technology this week.
S&P 500 sector positioning (out/under performance)
• Sectors poised to out-perform are:
Financials Financial Select Sector SPDR Fund (XLF), SPDR S&P Bank ETF (KBE)
Energy Energy Select Sector SPDR Fund (XLE)
Miners SPDR S&P Metals & Mining (XME)
Technology Technology Select Sector SPDR Fund (XLK)
Industrials Industrial Select Sector SPDR Fund (XLI)
and Materials Materials Select Sector SPDR Fund (XLB).
• Sectors poised to neutral-perform:
• Sectors more likely to under-perform :
Staples Consumer Staples Select Sector SPDR Fund (XLP)
Utilities Utilities Select SPDR Fund (XLU)
REITs Real Estate Select Sector SPDR Fund (XLRE)
Healthcare SPDR S&P Biotech ETF (XBI), SPDR S&P Pharmaceuticals ETF (XPH).
Interested in more information on BioTech Investing? Don’t miss our Biotech Webinar Series, Tuesday June 27th. Reserve your free spot today, and watch live as top biotech experts guide you to investment opportunities and help steer you away from pitfalls.
Related Articles on STRATEGIES
Activist investing continues to gain advocates — and capital; according to Hedge Fund Research...
While the Dow has not stayed on the balance line we’ve discussed in recent updates, last Frida...
We must apply a high degree of logic in our daily lives to survive and prosper. Yet, in trading, the...