Author: Ivanhoff

Momentum Monday – Sector Rotations Continue

All charts on Momentum Monday are powered by MarketSmith

While biotech, healthcare, and some software stocks are under pressure, the so-called old-economy sectors – finance, manufacturing, and transportation, are shining. Money never sleeps, indeed. It just rotates from one sector to another.

The Nasdaq 100 is at all-time highs led by the enterprise software giant Microsoft. Google and Amazon are not too far behind – both of them are setting up for potential breakout and have earnings due soon. Apple is back to a trillion-dollar valuation.

Check out my two best trading books:

Swing Trading with options – How to Trade Big Trends for Big Profits

Top 10 Trading Setups – How to find them, hot to trade them, hot to make money with them.

Chinese Stocks Might Be Setting Up Again

All charts in this post are powered by MarketSmith

The best performing sectors after a deep market correction (like the one we had in the last quarter of 2018) are usually the ones that get hit the worst. Chinese names certainly fit that category. Most had a 50 to 90% drawdown in 2018; therefore, it should not be a big surprise that many Chinese stocks are among the best performing year-to-date.

CQQQ, which an ETF concentrated in Chinese tech stocks, is firmly back above its 50 and 200-day moving averages and with rising relative strength rating. It is setting up in a tight range near its year-to-date highs. If you look under its surface, you will notice quite a few individual Chinese stocks setting up for a potential leg higher. I highlighted a few of them for our members at Market Wisdom.

Check out my two best trading books:

Swing Trading with options – How to Trade Big Trends for Big Profits

Top 10 Trading Setups – How to find them, hot to trade them, hot to make money with them.

Momentum Monday – Earnings Season and Game of Thrones Are Back

All charts on Momentum Monday are powered by MarketSmith

The current bull market continues to correct through sector rotation. While money is flowing into financials, semiconductors, energy, and software, healthcare and biotech have been under pressure as of late.

Will Disney+ disrupt Netflix or the new online streaming service is not a big positive for Disney and neutral for Netflix. We will know a lot more about how the market perceives it after Netflix’s earnings on Tuesday.

We also cover athleisure stocks – NKE and LULU are consolidating near all-time highs.