Broader market proceed to indicate energy as laggard sectors $XLV +3.5% $XLU +2.4% and $XLP +1.8% lastly joins the bull celebration through breaking out from their highlighted bases. Quick time period breath stays bullish bias with no indicators of weak spot. Nonetheless, there’s evident rotation from main teams, as seen with $MGK -1.0% $SMH -2.0% $WGMI -0.8% $XLC -2.4%, whereas $QQQ decline -0.9%, its equal weight coutnerpart $QQQE closed the week with a formidable +0.8%.
The choice on whether or not sizing down from energy within the earlier week was proper or mistaken stays to be seen. However one factor that’s particular is the numerous discount in revenue and loss volatility. As we face a slew of upcoming earnings, the outlook for the quick week stays unsure. Ensure that to pay attention to the earnings dates for the sizable holdings in your portfolio. Keep away from the state of affairs the place chances are you’ll expertise vital earnings loss much like what occurred to $ASML, $TSM, and $AAL.
You probably have a protracted watchlist of shares and discover the pullback to the 20-MA interesting, I strongly suggest re-evaluating their relative energy (RS) and figuring out any decrease excessive bearish divergences towards its the upper excessive made in worth. It is a nice filtering train this week to your Aces. You may be shock by the newest improvement of RS in lots of main names.
Thanks for studying.
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Week of 24/7/2023 Market Diary,
The choice on whether or not sizing down from energy within the earlier week was proper or mistaken stays to be seen. However one factor that’s particular is the numerous discount in revenue and loss volatility. As we face a slew of upcoming earnings, the… pic.twitter.com/Oh1IxaTiqA
— Jeff Solar, CFTe (@jfsrevg) July 23, 2023
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