Just when you think a sector can’t stop running, it does. The recent decline in tech stocks is a perfect example of why to never fall in love with a stock. To be a consistent trader, it’s important to judge every stock with the same level of scrutiny.
Some of my favorite ETFs are hurting and I’ll likely move out of them if the bleeding continues through the end of the week.
- ROBO drops below sma50
- HACK testing horizontal support
- IBUY retesting EMA23. NOTE: IBUY hasn’t closed below EMA23 since March.
XLK – this is not pretty, but it’s now testing an important level of support – both horizontal and SMA100
XLK Daily
So, where did the money go?
The majority of the money that left tech stocks ended up in financials, energy, and basic materials. Energy positions, like USO, are on a strong 8-day run. However, strong resistance sits just above.
last week rocked 4 energy stocks (I’m in $USO), but the daily shows a failed test of sma50 on $XLE. worth watching https://t.co/5PX2e6lJJO
— 🦏 Ryan 🦏 (@ryanmathews) July 4, 2017
The financials have moved very well over the last few weeks, but XLF is now at an inflection point. Consolidation would be nice here.
XLF Daily
So, where do we go from here?
I’m losing confidence in the current energy run and expect it to relax for the next week, or so. There are, however, a good number of drillers worth eyeballing (ESV, RIG, NE, etc). Technically, they are interesting, but I can’t figure out why the market would want more drilling.
I don’t see a lot of great setups in Financial stocks. Technically, oil drilling and equipment look better. However, I’m a buyer of financials on pullbacks (long C).
Stocks on Watchlist
Insurance stocks: AHL, RE, TPRE, MHLD
AHL Daily
Agriculture stocks: POT, CF, MOS, MON, DD, IPI, RTK
RTK Target .69
RTK Daily
MS has a pretty good long swing look
MS Daily
I’m interested in bottom picking LOW. It’s a messy chart, but I like the idea of going long if sma100 holds on WEEKLY chart.
LOW Weekly
Regarding tech stocks.. I need to see some bottom consolidation for a day, or two. Most of the leaders finished at or near their lows on Monday. Ouch.
$SMH hurtin for certain. watching for buyers here and $80.00https://t.co/SdlPzLJjh1
— 🦏 Ryan 🦏 (@ryanmathews) July 3, 2017
