(05/01/18) View from Toronto Video & Charts: Key Sectors to Swing Trade Lon

View from Toronto Video & Charts: Key Sectors to Swing Trade Long

05/01/2018 3:44 pm EST•3 min read

Managing Director and Partner

Independent Investor Institute

The S&P 500 is dislocated and cheap on 52-week routines and trying to bounce on earnings. If Scenario A or B is playing out, the following sectors (in order of importance) would be more opportune to swing trade long, says Ziad Jasani. He offers three scenarios this week.

Ziad’s market strategy video

Recorded: Monday April 30, 2018
Duration: 1:06:41

chart 1

Industrials (XLI)
• XLI > $73.10 (200-day average) or bounce off $72.42

Healthcare (XLV, XBI, XPH)
• XLV > $83.73 or bounce off $82.01
• XBI > $88.33 or > $90.17 or bounce off $86.27
• XPH > $41.36 or bounce off $40.50
• XHE > $72.51 or bounce off $69.99 or $68.66

Technology (QQQ, XLK, IYW)
• QQQ > $162.66 or bounce off $159.69
• XLK > $66.17 or bounce off $64.95
• IYW > $169.94 or bounce off $166.51

Materials (XLB, XME)
• XLB > $58.26 (200-day average) or bounce off $57.20
• XME > $35.82 or bounce off > $34.65-$34.19

Financials (XLF, KBE, KRE, KIE) if 10-year UST >3%
• XLF > $27.88 or > $28.22 or bounce off $27.08
• KBE > $48.66 or > $49.81 or bounce off $47.63
• KRE > $62.71 or bounce off $61.90
• KIE > $ 31.16 or bounce off $30.80

Discretionaries (XLY)
• XLY > $104.66 or bounce off $103.22

chart 2

Energy (XLE, XOP, XES) – If Oil > $68
• XLE > $73.60 or bounce off $71.41
• XOP > $38.84 or bounce off > $36.95
• RYE > $60 or bounce off $56
• XES > $17.39 or bounce off $16.60 if the 10-year U.S. Treasury yield stays below ~3.07% and Scenario A is playing out for equities, we can consider building shortterm swing-trades (long) within the Defensive Sectors. A break below 2.7% on the 10-year could open the idea of longer-term acquisition of Defensives:

• Staples (XLP) > $50.84 or bounce off $49.97

chart 3