Another wild week is in the books for the markets. The indexes and leading names continued their grind higher in what has been one of the “crazier” short squeezes we’ve seen in a while.
Next week we have quarterly-expiration in the options market on March 31, which likely means the market could trade sideways into Friday. While we patiently wait for more clarity in the indexes, we’ll be focusing on the best trends the markets have to offer and taking good entries as they’re offered.
What are the “best of the best” trends in the market at the moment?
Based on our criteria, energy stocks, healthcare stocks, and fertilizer stocks all have the attractive combination of trend, structure, and bullish momentum. As good as these trends look, it’s important to not chase an entry.
A dip and a better entry is always around the corner, and that better entry is always worth the wait.
Below are a handful of our favorite setups in these leading sectors:
XLE: Energy Sector
EOG
DVN
UNG
XLV: Healthcare Sector
JNJ
CVS
Fertilizer stocks:
MOS
CLF
Notice a theme here?
These setups are all in uptrends, have positive histograms, and positively stacked exponential moving average (EMA) points. When a setup fits this criteria, our only job is to wait for a dip and take action when the ideal entry is offered.
We’re going into the weekend holding positions in DVN, CVS, and a few others that we’ll be covering in the Sunday watchlist video. For the stocks and sectors that don’t have these bullish criteria, we’ll ignore those until they begin to rebuild their charts.
Stay Focused!