By: Scott Redler
Strategy rotation seems to be the key these days. The market continues to maneuver the upper channel, meanwhile day and a half strategies continue to pay active traders. Buying AAPL on Wednesday and selling Thursday Morning paid off nicely and buying AMZN Thursday and selling this morning would do the same. I can name plenty of situations like this in tech, as the big names continue to take turns providing opportunities both long and short. The bottom line is that this market keeps rotating–stocks and sectors alike–so we have to as well.
Sector Rundown
- People made money in the HEALTH INSURERS yesterday (a sector I never trade). This morning I looked at some of those charts–UNH and WLP had nice breakout moves and look particularly good, with others following suit. Keep these on the radar moving forward.
- Oil is still sliding, BUT there is news out there today that “world demand” should increase next year. See if that gives us a bounce. The OIH had a nice two day bounce against the $110 support we’ve been talking about.
- Goldman Sachs had a nice move Wednesday and did a little packing and filling as it’s trying to hold up. GS must stay strong if there is any chance for a sustained move in the banks. The sector on the whole did not get any power on GS’s strength and we need to watch that relationship.
- We are in Tier one GLD long from $110.40ish (although it still feels a big heavy), as it’s worth giving it a try in that zone. There is a mini downtrend that can be breached in the $112-112.40 area. If we trade through there with force it’s definitely worth watching.
- The S&P is smack in the middle of its upper channel, so trading stocks has been more profitable than trading indices (aside for at key levels).
