Systematic Trading Strategies and Next Level Trading Setups
Complimentary Analysis
Several finance-related ETFs and stocks broke out with big moves from early October to early November. Many of these then stalled over the last two weeks and this rest could be the pause that refreshes. Today we will look at performance for the finance-related ETFs and the bull flags taking shape in three banking stocks
The S&P 500 SPDR and Nasdaq 100 ETF recorded new all time highs this past week, while the S&P MidCap 400 SPDR hit a new 52-week high in November. Sounds bullish, but the S&P SmallCap 600 SPDR and Russell 2000 ETF are still well below their 2018 highs, even though they are very close to 52-week highs. Which index ETFs tell the real story here?
The character of the stock market changed over the last six to seven weeks as the market took on a more offensive tone. Stocks were already in bull mode, but we are now seeing stocks outperforming bonds. In addition, momentum and offensive sectors are leading.
New highs expanded in the small-cap universe over the last few weeks and this indicates that the bull market is broadening. This post will first look at the high-low pairs for the S&P indexes and then apply a 20-day SMA to show the improvement in new highs over the last few weeks.
The Russell 2000 ETF is in the nascent stages of an uptrend, but the Russell Microcap ETF is still short of a breakout. The Russell 1000 ETF left both behind over the last few months with a steady uptrend and continued leadership.
The new high parade continued this week with the S&P 500 SPDR and four sector SPDRs hitting new highs. The
The Nasdaq AD Line is not keeping pace with the Nasdaq Composite, but this is not necessarily bearish. Note that the Nasdaq hit a new high in July and again on November 1st
The Biotech ETF (IBB) is making a bullish statement with recent developments in momentum, volume and trend.
The market as a whole is not firing on all cylinders, but that is not really important. What, then, is
Bullish continuation patterns are my favorite patterns when it comes to stocks and ETFs. As the name suggests, bullish continuation
The Industrials SPDR (XLI) and Finance SPDR (XLF) are two of the big six sectors in the S&P 500 and
The lack of new highs may seem like a concern, but one cannot talk about new highs without also looking at new lows because there are two sides to the story.
SPY closed well below its intraday high to put this follow-through day in question. Nevertheless, chartists should not loose sight of the bigger picture.
My assumptions and biases are based on the bigger trend because it is the dominant force at work. When the trend is up, I view the cup as half full and expect more bullish resolutions than bearish resolutions.
There was a big change in the Fed balance sheet over the last few weeks that investors should know – and not fight.
The Russell is a clumsy index prone to big swings that do not foreshadow major bull and bear markets.
Here’s a technique to use S&P 500 High-Low Percent for long-term market timing and the High-Low Line for short-term timing.
While the important market-cap weighted sector SPDRs continue to hold up well, some key equal weight sectors are not performing well.
Mean-reversion signals provide a great way to trade in the direction of the bigger uptrend after a pullback. The trick