The equities market is experiencing obvious signs of self reflection and rotation (hello energy).  This increases the odds of a significant pullback across the board, but volume hasn’t played that scenario out quite yet. In the absence of a pullback, we often experience a strengthening in ‘safety’ trades like high dividend paying stocks and utility stocks (hello regulated utilities).

For now, I’m not stressing about the rotation out of tech – there are a LOT of good looking setups.  Regarding tech stocks, I do feel that it’s bearish for the overall market if the tech leaders (FAANG) start falling through support.  Traders will likely freak if that’s the case.

Few Big Picture Charts

For SPY,I’m watching the pullback to horizontal support ~240.54. But, it’s very difficult to know where SPY is headed right now and for most of my trades, it makes more sense to focus on individual stocks and sectors.

SPY

As much as I don’t understand it, XLE looks pretty good and more specifically, many oil and gas stocks finished strong on Friday.

XLE

Stocks making the watch list

I have a ton of stocks on my watch list, but here are my favorite charts worth watching headed into Monday:

XRAY – watching that horizontal resistance

XRAY

AVEO trying to come out of a symmetrical triangle with strong Friday volume.

AVEO

OKE – energy play… there are a lot of charts that look just like OKE.

OKE

VRAY not doing a lot yet, but watching for test of sma50 (red line)

VRAY