The total chop-fest continued in the markets this week, even as the SPY (shown below) grinded to a new all-time high (ATH). Not much action to say the least as we go into the weekend, once again eagerly awaiting some momentum.
While the indexes were mostly flat/choppy this week, there were some pockets of the market that saw some nasty selling pressure, such as industrial stocks and transportation stocks. Take a look at names like UPS, FDX, and even CAT (which we traded profitably three times over the last few weeks). Despite their prior leadership, the bullish structure of each of these charts (shown below) broke down this week.
We are still looking for a move higher over the next few weeks for the markets, but observations like this are important, as we want to identify which group of stocks in the market are most likely to lead the way. While industrials and transports lost structure this week, we think technology (QQQ) kept up well, and is still poised for a move into new highs.
GOOGL continues to be our favorite pick when it comes to the tech names, and after closing over $15,000 of profits on the stock last week, we have initiated a few new positions here. As long as the QQQ continues to look poised for a run into new highs, we will be looking for the current 4-hour squeeze in GOOGL to fire long and push the stock toward (another) new high in the $2,450-$2,460 range.
We’re on the road this week, so we weren’t able to be as active at the charts as we’d typically like to be. However, we’ll be back to work this coming Monday, ready to take advantage of any potential momentum the market may (finally) have to offer! In this Sunday’s watch list video, we’ll dive deeper into the analysis of QQQ and GOOGL, and will take a look at a few other charts that are catching our eye, like PLBY and COST.
Enjoy your weekend, rest up, and Stay Focused!