We are exercising caution as the growth stocks and S&P 500 (NYSE:SPY) are in warning phases, well below their July calendar ranges, and with momentum showing some mean reversion but not enough momentum to get me to put clients in new positions
Could that change?
Yes, but I’d rather wait for that to change and meanwhile consider the relative strength in the metal miners and oil right now.
Also, long bonds TLT are signaling trouble ahead with risk off.
As the market finds some footing we see rotation back into growth stocks.
While the market sorts out the true value of equities going forward considering these variables
- Future earnings
- Rising costs
- Geopolitics
- FED rate cut and by how much,
We are focused on commodities for investors looking to enter low-risk, high-return potential right now.
Nasdaq Indecisive
Right now, the NASDAQ chart shows a lack of clarity.
While the move off the lows is impressive, QQQ needs to clear the 50-DMA and the July 6-month calendar range low.
The performance versus the SPY has improved, while the Momentum at this point, also needs to prove more.
ETF Summary
- S&P 500 (SPY) 540 cleared which makes this level pivotal
- Russell 2000 (IWM) 210 resistance 199 support
- Dow (DIA) 400 back to near resistance
- Nasdaq (QQQ) 475 area resistance
- Regional banks (KRE) 50-52 support
- Semiconductors (SMH) 240 resistance
- Transportation (IYT) Eyes here to see if it can clear back over the 50-WMA
- Biotechnology (IBB) 141 now support
- Retail (XRT) 73.50 now super pivotal-strong above weak below
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Back to risk on over 78.00