Published on July 19, 2017 @ 7:26am
More ripping to the upside yesterday with the NASDAQ Composite finally leading the charge again - something we haven't seen in a while. Following a very modest pullback in early morning trading yesterday, the major indices moved higher on the day with the NASDAQ making another new all-time high.
It still continues to be a bit of a mixed bag with different sectors leading from day-to-day, but overall the recent move higher appears to have been pretty broad based. Even healthcare came fighting back yesterday with XLV, the primary ETF tracking the space, posting some modest gains on the day - despite Congress' inability to get anything done there. No surprise that's for sure.
At this point, all signs continue to point to higher levels ahead across the major indices. We questioned these markets for a few weeks there - even testing the recent rally with a suggested index short trade - but based on the last few days of strength, we see no technical or fundamental reasons to question the recent rally anymore.
Although volatility in both directions could potentially continue to plague these markets, we've identified some key technical expansion levels on the NASDAQ suggesting a potential move to roughly 6,443 - and even 6,665. It would be at either of those two levels we'd assess how the index got there in an effort to determine what comes next.
We're also still eyeing the 2,500 level on the S&P 500 - our previously published target there - so we'll see where the NASDAQ is if and when the S&P 500 achieves that 2,500 level.
Our long-term bullish stance remains intact despite our recent questioning of the markets' ability to move higher before it moved lower.
Actionable Index ETF Short-Term Trades: No strong context at this point to get long or short the index ETF's.
We're still eyeing a potential move in oil to roughly $48 and change before it could resume its longer-term downtrend again. That would represent a key short-term retracement level - one that could serve as a resistance line.
Gold continues to waffle around current levels with GLD, the primary ETF tracking gold, still testing a key retracement level around $118 - a level that could end up serving as a reversal in gold any day now.
Biotech is leading the move higher today with BIB and LABU moving higher on the day - something we continue to point to for short-term traders looking to scalp some gains from the biotech sector.
TLT, the primary ETF tracking long-term bonds, still continues to move higher off its recent lows, thus offering a decent hedge against any potential market downturn.
The dollar continues to move lower with no clear reversal in sight yet.
Financials continue to build a short-term base with the recent consolidation in the daily chart of XLF, the primary ETF tracking the financial space, now favoring a potential move higher. The longer financials consolidate, the more it favors another breakout to the upside.
Actionable Sector Based ETF Short-Term Trades: Hold TLT long - set SSL above entry. Hold BIB and/or LABU with tight mental stop. No action on Oil. Speculative gold short via DGLD or DUST still in play with tight mental stop.
New Individual Company Additions: None
Current Open Idea Updates:
Steel Dynamics (STLD) is expected to report earnings today after the close of $.63 cents per share on revenue of $2.39B - still bullish on steel stocks going forward.
If you have any questions or would like further details regarding any of the information provided above, please call your Rep - 619-369-9316.