Weekend Video – Large vs Small, XLK Accelerates Higher, Gold/Silver Firm, Oversold Conditions in Commodity-related ETFs (Premium)

Vacation Notice

It is time for a little vacation in July and the publishing schedule will be as follows: 

  • Vacation from July 5th to July 8th (Monday to Thursday)
  • Short Updates on July 9th and 10th (Friday/Saturday)
  • Vacation from July 12th to 17th (Monday to Saturday)
  • Normal Schedule Resumes on Thursday, July 22nd

Think I will reread Reminiscences of a Stock Operator and Trading in the Zone, which are two of the twelve books on my reading list.

Check out the Premium Page (click here) for articles and videos covering trading strategies, seasonality, exits, patterns and more.

Stocks finished on a high note yet again with large-caps leading the way as SPY and QQQ hit new highs. IWM was down, but remains with a triangle breakout. The yield curves narrowed even further in late June and this was accompanied by new highs in oil. Short-term breadth is dragging, but long-term breadth remains strong with over 90% of S&P 500 stocks above their 200-day SMAs. Tech, Communication Services, Healthcare and Consumer Discretionary are the leading sectors. Banks continue to drag their feet and weigh on small-cap performance.

Broad Market Notes

  • Large-caps Surge as Small-caps Stumble
  • QQQ Leads Market Since mid May
  • Composite Breadth Model Remains Bullish
  • Yield Spreads hit New Lows (again)
  • Bonds Continue Higher (Yields Lower)
  • Oil Hits Another New High
  • Gold Firms as Silver Breaks Short-term Resistance
  • Dollar Holds above 200-day

ETF Highlights

  • Small-caps Remain a Mess
  • Micro-cap ETF Tests Breakout Zone
  • XLK, XLY, XLC, XLV Lead with New Highs
  • Software, Internet, Cloud and Cyber are Strong and Extended
  • Semiconductor ETF Breaks Out
  • Mobile Payments ETF Holds Upswing
  • Home Construction ETF Extends on Wedge Breakout
  • Bank ETFs Drift Lower
  • Clean Energy ETFs Get Pennant Breakouts
  • Healthcare Providers ETF Breaks Flag
  • Oil & Gas Equipment & Services ETF Forms Flag
  • Oversold Conditions for Copper, Steel and Uranium ETFs
    Timber and Agribusiness ETFs Go for Bounce
  • A Pattern within a Pattern for Sports Betting iGaming ETF
  • PHO Breaks out as IYZ Forms Similar Triangle
Thanks for tuning in and have a great weekend!

-Arthur Hill, CMT
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