Did you get smacked around by Friday’s equity rotation out of tech stocks? Many of us did (see below for all the stocks I stopped out of), but you gotta be prepared for this stuff. Never let your stocks float along without some kind of stop. Even the best of the best lost over 3% Friday afternoon.
Take a look at the heat map – It’s obvious that this wasn’t a broad market sell-off. It only felt like it to those holding tech-heavy positions.
Market Heat Map click to enlarge
Most of the money shifted into banks and energy, but the strength was seen all over despite the media’s focus on the big boys like AAPL, GOOGL, FB, and AMZN.
How my trades played out
Overall, I was slightly up after Friday’s stop-loss party and find myself heavily positioned in cash.
crazy day. I go to lunch feeling good, then my phone starts blowing up with stop loss orders filling. Overall, I came out ok 😬 pic.twitter.com/9q6EULRefS
— 🐂Ryan🐂 (@ryanmathews) June 10, 2017
Few thoughts headed into Monday
- The market is still strong and I consider the tech sell-off a gift and will look to reload when the buyers come back in.
- I’m riding the bounce in WFC as the market seems to think this Wednesday’s FED news will boost this sector even higher. We’ll need to be cautious here, however, as the news may not support the rally and traders will quickly exit. Protect your financial stocks Wednesday!
- Lots of economic data on tap that could prevent some of the tech recovery and possibly pull the rest of the market down with it. On Wednesday, Crude Oil Inventories, and lots of Retail sales data will share the spotlight with the FED. Watch for housing data on Friday.
- I’m not too confident in the strength of this energy rally. The charts look great, but unless we see good inventory numbers on Wednesday, I don’t see this move surviving past a few more days. We’ll see, but if oil prices continue to stay under $50, I don’t have much interest in chasing.
Basic Materials – 1 day gains
