Systematic Strategies and Next Level Technical Analysis

Aerospace and Infrastructure Correct – Copper Breaks Out as Copper Miners Firm

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Software Shows Relative Strength – AI ETFs Correct with Setups Emerging

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The stock market moved into corrective mode over the last few weeks as the major index ETFs traded sideways. QQQ and SPY consolidated since June, while small-caps (IJR) and mid-caps consolidated in July. Software ETFs show relative strength as bullish setups emerge in AI ETFs. $SPY $RSP $QQQ $XLK $IGV $XSW $AIQ $ARTY $DTCR $IDGT $SMH $SOXX $DRAM

Software Shows Relative Strength – AI ETFs Correct with Setups Emerging Read More »

Tech Lags as Other Sectors Lead – SPY/QQQ Correct – Energy ETFs Turn Up in July

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The bull market remains in place with rotations under the surface. Tech led the way higher in April-May, but took a backseat since June and corrected. After massive advances, tech stocks are entitled to a corrective period. Other sectors picked up the slack as finance, industrials and healthcare moved higher. This means SPY is basically flat since June as tech weakness is offset with strength elsewhere. Thus, SPY and QQQ remain in corrective mode, as are the AI ETFs (AIQ, ARTY). Utilities are strong since June as XLU extends on its breakout and energy ETFs turned up in July. $SPY $QQQ $XLK $AIQ $ARTY $XLV $KRE $PBW $XBI $MOO $XLU $XLE $XOP $OIH $FCG

Tech Lags as Other Sectors Lead – SPY/QQQ Correct – Energy ETFs Turn Up in July Read More »

Copper Firms in Setup Zone, Base Metals Turn Up and Uranium Overshoots

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Today’s report focuses on three industrial metals ETFs. The Copper ETF and DB Base Metals ETF are correcting within long-term uptrends and hitting Bullish Setup Zones. DBB turned up on Thursday, but CPER remains short of a breakout. While I cannot make the case for an uptrend in Physical Uranium, the five month decline looks like a correction after the December-January surge. $CPER $DBB $SRUUF

Copper Firms in Setup Zone, Base Metals Turn Up and Uranium Overshoots Read More »

QQQ, Tech and Semis Correct within Uptrends – Nvidia and Broadcom Test 200-day

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Today’s report targets QQQ, the tech sector and the semiconductor industry. Tech is the biggest sector in SPY and QQQ, while semiconductors account for around half of the tech sector. QQQ and XLK are in correction mode, while SMH and SOXX pulled back over the last two weeks. All four are still in long-term utprends and bullish setups could be emerging. We finish with two stocks: Nvidia and Broadcom. $QQQ $XLK $AIQ $SMH $SOXX $NVDA $AVGO

QQQ, Tech and Semis Correct within Uptrends – Nvidia and Broadcom Test 200-day Read More »

TechnipFMC Breaks Out, Oceaneering Leads, Cheniere Surges, Kinder Morgen Turns

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Today’s report focuses on four stocks within the energy sector, which was the focus of Tuesday’s report. XLE and OIH are still in long-term uptrends and hit Bullish Setup Zones with corrections from April to June. We start with two leaders that breaking out: TechnipFMC and Oceaneering. Attention then turns to Cheniere Energy as its surges off Bullish Setup Zone and Kinger Morgen as it turns up within a consolidation. $FTI $OII $LNG $KMI

TechnipFMC Breaks Out, Oceaneering Leads, Cheniere Surges, Kinder Morgen Turns Read More »

Tech Consolidates as Bull Market Broadens – Watch QQQ for Clues on SPY

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There was a clear rotation in June as money moved out of large-cap tech and into industrials, finance and healthcare. Small-caps are also outperforming large-caps and breadth continues to improve within the S&P 500. At this point, relative weakness in XLK and QQQ looks more like a correction after a strong advance. I am watching the pennants in XLK and QQQ for the next directional signals. $SPY $QQQ $XLK

Tech Consolidates as Bull Market Broadens – Watch QQQ for Clues on SPY Read More »

Energy ETFs Hit Bullish Setup Zones (XLE, XOP, OIH, FCG) – Breaking Down XLE

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This report focuses on the energy sector, which led the market from January to March and lagged from April to June. Energy is still up 20% year-to-date and in a long-term uptrend. Moreover, XLE and three industry group ETFs are trading in Bullish Setup Zones. These are areas to watch for the end of the correction and a resumption of the bigger uptrend. $XLE $XOP $OIH $FCG

Energy ETFs Hit Bullish Setup Zones (XLE, XOP, OIH, FCG) – Breaking Down XLE Read More »

Agribusiness ETF Forms Outside Reversal and Surges off Bullish Setup Zone

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The Agribusiness ETF is setting up bullish as affirms support with an outside reversal week and surges off a Bullish Setup Zone. Today’s report and video will explain the rationale behind these zones and show the key level to watch for a breakout. We will also look at performance for the top ten component stocks. $MOO

Agribusiness ETF Forms Outside Reversal and Surges off Bullish Setup Zone Read More »

Rising Rates Lift Dollar – Copper and Base Metals Set Up – Ag Holds Breakout

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Rising short-term rates are pushing the US Dollar higher, which is weighing on precious metals. Oil also moved into a downtrend with a break below the April lows. Industrial metals are holding up relatively well and copper is setting up bullish. Elsewhere, the Agriculture ETF is holding its breakout as it weathers a volatility storm. $USD $UST2Y, $IEF, $UST10Y, $CPER, $DBB, $DBA

Rising Rates Lift Dollar – Copper and Base Metals Set Up – Ag Holds Breakout Read More »

First Solar Hits BSZ – Quanta Breaks Out – Arista Consolidates within Uptrend

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Today’s report features three stocks from recently covered ETFs. First Solar is part of the Solar Energy ETF (TAN), which recently corrected back to its rising 200-day SMA. Arista Networks is part of the Data Center Digital Infra ETF (DTCR), which remains in a leading uptrend. Quanta Services is part of the Infrastructure ETF (IFRA), which recently recorded a new high. $FSLR $ANET $IFRA

First Solar Hits BSZ – Quanta Breaks Out – Arista Consolidates within Uptrend Read More »

Small-caps Lead – Space Bounces – Clean Energy Sets Up – Telecom Breaks Out

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The weight of the evidence remains bullish for stocks. Some 63% of S&P 500 stocks are above their 200-day SMAs, new highs are outpacing new lows and yield spreads remain narrow. Money rotated out of tech in June as XLK fell and QQQ consolidated. Industrials, Healthcare, Utilities and Finance picked up the slack. Today’s setups are in Space, Clean Energy, Solar and Telecom. $SPY $QQQ $IJR $IJH $SOXX $XLK $AIQ $DTCR $XLV $XLI $XLF $XLU $ITA $UFO $PBW $TAN $IYZ

Small-caps Lead – Space Bounces – Clean Energy Sets Up – Telecom Breaks Out Read More »

Tech Weighs, but Other Groups Pick up the Slack – Biotech and Banks Lead

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The technology sector is weighing on the S&P 500 as SPY corrects in June. Other sectors, however, are picking up the slack with industrials and healthcare moving higher. This June rotation is also benefitting the Regional Bank ETF and Biotech SPDR, which hit new highs. Today’s report will cover the recent rotations and show how the trade the trend in these two ETFs. $XLI $XLV $XLU $XLF $KRE $XBI $KBE $IBB $ITA

Tech Weighs, but Other Groups Pick up the Slack – Biotech and Banks Lead Read More »

Dollar Surges – Copper & Base Metals hit Bullish Setup Zones – Bonds Break Out

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The Dollar is ripping higher with a 4+ percent gain since early May. Rising short-term rates are propping up the Dollar, which is weighing on commodities. Gold and copper fell sharpy the last three weeks. Gold was already in a downtrend, but copper remains in a long-term uptrend. The Copper and Base Metals ETFs are also nearing Bullish Setup Zones. Elsewhere, the Copper Miners ETF broke the May lows, the 7-10Yr TBond ETF broke out to a 25-day high, the DB Agriculture ETF has breakout working. $USD $GLD $CPER $DBB $IEF $DBA

Dollar Surges – Copper & Base Metals hit Bullish Setup Zones – Bonds Break Out Read More »

Defense Stocks – BWX Technologies, General Dynamics and RTX Corp

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Today’s report focuses on three stocks in the Aerospace & Defense ETF, which has a breakout working since late May. This group corrected in March-April, found its footing in May and moved higher in June. Defense stocks are also part of the Industrials SPDR and account for 24.4% of the sector. BWX Tech reversed off of a support zone, General Dynamics turned up within a consolidation and RTX recaptured its 200-day. SMA $BWXT $GD $RTX

Defense Stocks – BWX Technologies, General Dynamics and RTX Corp Read More »

Breadth Diverges – Tech Breakouts Under Threat – Banks, Infra and Biotech Lead

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The weight of the evidence remains bullish for stocks, but several tech groups are showing relative weakness here in June. Semiconductors are still strong with new highs again on Monday. However, SMH and SOXX are very extended and ripe for a rest. Tech is the biggest sector in the S&P 500 and semis are the biggest industry group within tech. The market is very dependent on one group right now. $SPY $QQQ $IJH $IJR $XLK $AIQ $DTCR $SMH $SOXX $XLI $XLF $XLU $XLV $KRE $KBE $IAI $ITA $IFRA $XBI $IBB

Breadth Diverges – Tech Breakouts Under Threat – Banks, Infra and Biotech Lead Read More »

Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth

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The Mag7 ETF is slightly lagging the broader market because of relative weakness in three components. Nevertheless, four components are showing strength and the ETF hit a moment of truth as it returned to the breakout zone. Today’s report will focus on performance for stocks in the Mag7, the Mag7 ETF chart and one of the leading components (Apple). $MAGS $AAPL

Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth Read More »

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