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1 Sector For A Market Rally, 1 For A Sell Off


ETF Trade Watch

The market sold off hard this morning after the PPI numbers were released, mudding the waters on whether or not the rally from yesterday and days prior is still in effect. On a 12-month basis, headline PPI increased 6%, still elevated but well off its 11.6% peak in March 2022. Following the release, futures tied to the Dow Jones Industrial Average down about 200 points.

We may see the market shrug off these numbers and continue to rally, but there is a chance this will be another nail in the market’s coffin. We don’t predict here, so we will see what the market gives us, and trade based on that.

Vanguard Communication Services ETF (VOX)

Since the Communications Services sector has been one of the best performing sectors of the past couple weeks, as the market rose, it should be a good play to make anytime the market continues its trek higher.

The tow biggest stocks in this ETF are Amazon (AMZN) and Meta Platforms (META). This morning these stocks are well off their highs of yesterday, however, the market does appear to have caught some traction. Be on the look out for which direction we get follow through with and craft your trading plan accordingly.

Energy Select Sector SPDR ETF (XLE)

If the market continues to sell off, then you might want to pay attention to the energy sector, which often moves opposite the market. Oil prices have been hitting a far amount of resistance around that $80 level, a break and hold above it could signal a move higher.

To see the full market breakdown, check out the video here!

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I look forward to trading with you, but until then, as always…

Good Luck!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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