Hi Everyone,
Here is what I’m thinking/seeing this week…
The S&P 500 Index ETF (SPY) closed below support from late January for the first time on Tuesday. The uptrend from the December 24th low has likely reversed, as it should. It was just unsustainable at the trajectory it was on. Because of the steep almost five month rip off the bottom the resulting dip should steepen from here. Friday’s price action traded the entire range of the new descending channel that has been formed this week and ended the day at the highs of this channel. To have any chance of stemming the slide we need closes above descending resistance. Honestly, I would rather see it go down to good solid support to send it ripping again. It really needs to get lower for a little “washout” to begin another expansion.
S&P 500 Index ETF (SPY) 15-minute
S&P 500 Index ETF (SPY) daily
In spite of Friday’s strong close, which was at resistance (not over), I still expect the slide to continue until we get to some serious support which is currently in the SPY 270 region, 6% lower.
See both 15 minute chart and daily chart for perspective and outlook. Maybe the bottom will coincide with a China trade deal??
With that in mind, most of my discussion this week will be a review as opposed to new entries, if I can help myself.
See all charts for my annotations.
I will cover all 2019 entry recommendations positions over the next few days except for the few bond/preferred/income products I highlighted earlier this year. They are all doing their thing nicely; spitting out income and behaving like an adult.
Remember, when the broader market dips most everything will dip.
So, on to the charts I began highlighting on January 7th this year.
SPDR’s Select Sector Financial ETF (XLF) weekly
Up 13% from my recommendation
Charles Schwab Corp (SCHW) daily
Up 8% from my recommendation
Vanguard Growth ETF (VUG) daily
Up 13.7% from my recommendation
Vanguard Total World Stock ETF (VT) daily
Up 8% from my recommendation
Invesco S&P 500 Low Volatility Portfolio (SPLV) daily
Up 12% from my recommendation
iShares MSCI Japan Index Fund ETF (EWJ) weekly
Up 2% from my recommendation
SPDR’s Select Sector Industrial ETF (XLI) weekly
Up 12% from my recommendation
iShares Dow Jones US Pharmaceutical Index Fund ETF (IHE) daily
Up 2% from my recommendation
SPDR S&P Transportation ETF (XTN) daily
Up 6.5% from my entry recommendation
Invesco S&P Equal Weight Industrial ETF (RGI) daily
Up 13% from my entry recommendation
JD.com (JD) daily
Up 13% from my entry recommendation and up 16% on my 3-4-29 recommendation to take partial profits
Stop. There are 27 more entry recommendations I have made this year. I will cover more tomorrow and the balance on Monday. Just too many to digest in one reading.
It’s been one heck of a year and I think the later half will be strong as well. Just my opinion on what the charts look like. Please do your own due diligence. I’m just one layer of analysis you should employ. I think it’s the most important layer but I’m probably a little biased.
Happy Mothers Day,
Don