Stock Market Commentary
The stock markets fell yesterday after an up week last week. Not much seems to have changed though. The S&P 500 is still trending bearish and trying to perform a reversal. We can see from the chart below that the 10-day simple moving average is still trying to cross over the 20-day simple moving average.
Note that this is the first time in about 7 weeks that the S&P 500 has climbed above its 20-day SMA. Per my model that means nothing of course. I am going to wait for the 10-day crossing over the 20-day before I call the reversal.
As I discussed in my Sunday note on the stock markets, several other markets had already reversed and turned bullish. I want to see if there is anything that has changed on them.
Current Holdings:
XLU Utilities - still trending bullish
XLV Healthcare - still trending bullish
EEM Emerging Markets - yes, trending bullish (note that I entered this position yesterday)
XSD/SOXL Semiconductors - XSD is trending bullish and SOXL is about to follow (note that I entered a position in SOXL yesterday)
Other Bullish Markets:
XLB Materials - still bullish but had a down day yesterday (Note that PICK is the 3x leveraged instrument for “metals and mining” and is also trending bullish. I will look at entering PICK today)
XLE Energy - continues to trend bullish
LIT Lithium - fell yesterday but continues to remain bullish
TAN - still trending bullish
ICLN Clean Energy - still trending bullish
Watching Markets:
NASDAQ - has not reversed yet
Russell 2000 - almost reversed and turning bullish. This one is so close that I will put the chart here.
I will look to get into IWM today.
QQQ NASDAQ 100 - still bearish
FNGU/BULZ Big Tech - both are still bearish.
Per my Big Tech Assessment from yesterday, only NFLX and BIDU from the FNGU stocks are trending bullish. Others are still trying.
From BULZ, aside from AMD and MU which continue to trend bullish, ZM also reversed and is now trending bullish. Also note that CRM had a good earnings call and is currently up around 8% pre-markets. So, BULZ may have some drivers to reverse quicker than FNGU. We will see.
Conclusions:
Markets still trying to reverse into bullish trend
I will continue to hold what I have: XLU, XLV, EEM, SOXL
I will look to enter positions in IWM and XLB/PICK today