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The Aerospace/Defense and Infrastructure ETFs are correcting within long-term uptrends and moderately oversold. I see broad strength within infrastructure and mixed performance within aerospace-defense. Copper and based metals are leading within the commodity space and the Copper Miners ETF is setting up bullish. $ITA $IFRA $CPER $DBB $COPX
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
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
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
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
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
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
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
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
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
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
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
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
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
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