While the overall market was mostly sloppy this week, we saw some great continuation in the trends we mentioned in last week’s newsletter, such as energy, consumer staples, and health care.
As far as energy (XLE) goes, the daily squeeze looks poised to fire long here, which should be good for a strong push through $80+. With such a solid structure to the ETF (Exchange Traded Fund), the individual names like EOG, DVN, and CVX look ready to run higher as well. At the moment, we’re long XLE call debit spreads for May expiration.
While the health care sector (XLV) is incredibly strong, it’s a bit too extended for an entry at the moment. On any dip, we’ll be watching names like PFE closely for a potential entry.
The consumer staples, and MO in particular, have been good to us over the last few weeks as we closed our fourth profitable trade in the setup this week. Since the structure is still in tact, we’ll be looking to jump back into MO, shooting for winning trade #5.
We hope you’re noticing the theme with these setups.
They are all in uptrends and have positively stacked exponential moving averages (EMAs). Getting long these setups will put the “wind at your back”.
In addition to these setups, here’s more we’re watching closely:
CCJ
MOS
RTX
NTR
As you’re preparing for next week, make sure the setups on your watchlist are supported by trend, structure, and momentum working in your favor.
In Sunday’s video, we’ll cover these setups in detail and a handful of others looking poised to make solid moves.
Stay Focused!