XLC trade ideas
Communications is KeyIn my honest opinion here. When looking at S&P through RRG, Communications sector XLC looks really good long term. Short term watch out as we could go as low as 70's or more before the bounce. But this should offer a nice low point of buy in, providing the FED does not mess it up. Pay attention to Communications news over this time span. maybe a week or two max.
XLC SPDR ETF long swing trade ideaI recently tweeted few ETFs that went looking good at the time, one of them was AMEX:XLC .
The ETF look much healthy and attractive now, the price managed to come back above the 200EMA and now it's above the 50EMA. This means that the uptrend is still intact, and for that reason I'm taking a swing trade on AMEX:XLC . This trade has the potential to yield a 1:3 risk-to-reward.
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Weekly Trade Plan - 18 NovAs i mentioned a few days ago the volatility leading up to the monthly expiration tomorrow has come to pass. We currently have 10 open positions in the Alpha Hunter put spread portfolio and considering the level of volatility I am inclined to not add more trades until we close some off. We have the COP put spread expiring tomorrow. I detail some management options available to you in the weekly video which has been posted. Please check it out and make the decision thats best for you. Our AMZN put spread that we added yesterday is up 50% already and I detail some roll trade opportunities as well.
Part of the reason for the volatility that we are seeing is the upcoming decision of who the next Fed chair will be. Honestly, in my view, it will make little difference to the reality of inflation and with that the stock market will continue to be the best place for your money and effort.
In the video I also detail the major signal elements for put spreads:
1) Entry at or near the 21 MA
2) Reversal signal
3) MA Cross
4) B score above 50
5) Alpha Score above 70
6) Stochastic Buy
7) Squeeze compressing with upside momentum
As traders, your plan should dictate whether you will trade on 1, 2, 4 or 7 indicators. I will trade on a minimum of 3 and my sizing of position will increase with an increase in a number of signals confirming the trade. Your exit signal can be a reduction in the number of confirmations (you entered on 4 and now you have 2 for example...). There is no right or wrong - only what works for you.
In closing, now is the time to ensure that all the small issues in your trading are fixed - nerves, fear, set ups, discipline, whatever is holding your performance. Your goals for 2022 should be already drafted so you know what you need to do in order to achieve your goals. In order to be successful in 2022 its about consistently following the rules you create. Sounds easy, right?
Have a great week ahead folks,
Chris
I rarely trade Canadian stocksTheres could some potential for CGX here. Seems to be matching the patterns for XLC and AMC. They're all running flat Elliott correction waves. Could also be a seasonality effect summer is approaching more people want to go out, movie theatres are slightly increasing capacity.
Market Rotation Into Energy (XLE) The past week there was rotation into Energy (XLE). There is precedent for rotations into energy marking tops and continuing as safe havens during corrections.
In the bottom chart, you see the rotation happening in September 2018, just before three months of market declines (21% on S%P 500 and 24% for Nasdaq).
Looking back further to the 2000 tech bubble, look at stocks like CVX, XOM and SLB. These stocks are going up or sideways while the market is crashing around them.
On the other hand, 2018 these stocks fell along with the market.
So the question is are we in a correction?
If so, is it more like 2000 or 2018?
Have energy stocks been held down while the tech bubble grew?
Will we see energy stocks climb over the next few months?
Sector Winners and Losers the Past WeekHere are the sector winners and losers the past week. XLB (Materials) wins out, gaining 1% compared to the other SPDR ETFs combined. XLC (Communications), XLK (Technology) and XLE (Energy) at the bottom.
Breaking out XLB into it's top performing stocks for the week, you can see which ones carried the weight of the moves including EMN, LYB and CF. All of these will be worth watching over the next few weeks.
V Cup and HandleTop 10 Holdings
FB - Facebook Inc A21.56%
GOOGL - Alphabet Inc A11.44%
GOOG - Alphabet Inc Class C11.12%
TMUS - T-Mobile US Inc6.48%
NFLX - Netflix Inc4.79%
ATVI - Activision Blizzard Inc4.66%
T - AT&T Inc4.37%
CMCSA - Comcast Corp Class A4.35%
EA - Electronic Arts Inc4.31%
CHTR - Charter Communications Inc A4.30%