Tax Reform, North Korea, Powell’s confirmation, Political Incorrectness, and Cryptocurrencies are the top 5 pins the market juggles.
Mergers and acquisitions (Buffalo Wild Wings and Arby’s the latest), Amazon’s dominance, a strong global economy, and the earthquake in Bali.
Sexual harassment issues, low inflation, and proposed, unpopular alterations of sacred landscapes are a few more pins to juggle.
Unless you have the same uncanny dexterity skills as our pictured juggler, how can most investors keep all those pins in the air at lightning speed?
Yesterday, I wrote about how my macro viewpoint typically follows the trail of the Transportation sector or IYT.
Does that make Tran our juggler?
Yesterday, IYT closed in the red and below the key 173 level. That snowballed into a lot of other sector declines.
Today, IYT opened higher on the day, cleared 173, then Friday’s high of 174.01.
From there, it traded up to 175.87 and closed at 175.81 with an unconfirmed phase improvement from warning to bullish.
IYT’s gain trickled to the Russell 2000 (IWM.) IWM cleared all the resistance and closed at new all-time highs.
Earlier in the day, I made a video for my subscribers telling them the IWM was the best buy today of the four indices. How did I know?
From IYT to IWM the market turned to Regional Banks (KRE.)
After failing to improve the phase to bullish yesterday, today, KRE soared 3.43% and into an unconfirmed bullish phase.
Super wonder woman Sister Semiconductors (SMH) rests. And that’s ok. Her job this year was to stimulate the market. Success! She can shop online for whatever her heart desires.
As far as Granny brick and mortar, Retail (XRT) proved today that she loves her Tran. Buy goods, ship goods, it’s all good.
XRT cleared the key monthly moving average resistance if she can hold above 42.65.
So, there you have it. A Modern Family in synch.
The best scenario and one that allows us investors to vicariously juggle all the pins the market can throw at us.
S&P 500 (SPY) Whoa is the only thing that comes up for me. Would take a cataclysmic event to change it.
Russell 2000 (IWM) Opened up above 150 and never really looked back. New all-time highs
Dow (DIA) 235 support to hold otherwise, whoa!
Nasdaq (QQQ) New highs but not where the excitement was today
KRE (Regional Banks) Prodigal son thunder-of course he earned that name so lets see how lavish he is before he blows it all and asks for forgiveness
SMH (Semiconductors) If cannot fill gap to 105.11 could see correction to 101.
IYT (Transportation) 175.78 the 50-DMA pivotal area
IBB (Biotechnology) 308 near-term support. 312 pivotal
XRT (Retail) Resuscitation Granny-cleared 42.65 now pivotal
IYR (Real Estate)
XLU (Utilities) Even Utes rallied
GLD (Gold Trust) You might want to look at buying volatility-seems it cannot stay in this range must longer
SLV (Silver) 15.90 support. 16.25 must clear
GDX (Gold Miners) If miners move up, there’s your sign for gold
XME (S&P Metals and Mining) Held 31 and rallied some-looks promising
USO (US Oil Fund) An exhaustion gap if this cannot clear 11.70. Then, could see 10.96
TAN (Solar Energy) Another exhaustion gap-time to trail up those stops
TLT (iShares 20+ Year Treasuries) 126.50 support
UUP (Dollar Bull) 24.40 should be good resistance