Residential construction was in the top 10 worst performing of 239 today, while our SRS position gained another 1.75% today. Regional banks (financials) were in the top 4 worst performing of 239. Retail was the top 15th worst performer-again of 239. Filling out the top 20 worst performers were variations of these (i.e. residential REITS), including semi conductors mentioned as well.
Here are some areas of weakness in the market I've identified using multiple criteria in extensive scanning. There are pockets of strength as well, but as I posted last week, the market breadth is falling apart and financials which rotated into upside momentum have steadily deteriorated and today we saw that again with FAZ gaining some upside traction.There are quite a few groups I've identified, the trick is to catch them at a time in which they provide high probability, low risk trades.
The initial Sectors identified include:
RESORT AND CASINOS
REITS (RESIDENTIAL, RETAIL, and OFFICE)-tonight's trade list feature REITS-make sure if you choose more then one, they are not in the same space. I chose these tonight because they offer excellent risk:reward setups now.
LEISURE
REAL ESTATE
DIVERSIFIED INVESTMENTS
AGRICULTURAL CHEMICALS
COMPUTER HARDWARE
SURETY & TITLE INSURANCE
MAJOR AIRLINES
REGIONAL AIRLINES
FOREIGN REGIONAL BANKS
CLOSED-END FUND-DEBT
UTILITIES
TOBACCO PRODUCTS
DIVERSIFIED UTILITIES
AEROSPACE/DEFENSE
MAJOR DRUG MANUFACTURERS
Tonight I'll be running long scans. All of the above groups are now in sorted watchlists, when they provide good positioning, they'll be on the Trade Ideas List. A word of caution, the low risk entries are only an advantage to you if you use proper risk management and position sizing. If you have any questions about that, please feel free to send me an email. Don't forget to check out the new trade ideas and set alerts for the new trade ideas, although many can be taken now at market.
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