1 Sector Likely To Lead A Rally
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ETF Trade Watch
Yesterday the market really decided to take off to the upside, but there still is not all that much to be bullish on other than so many people are bearish at the present moment. However, there still need to be some confirmation of follow through before we go all in on this rally.
Looking at the 1-year chart on SPY or QQQ and it would appear both are still in an upward moving channel, signaling a bullish move at the very least. Yet, the market sentiment is overwhelming negative if you watch or read the news.
In any case, when we trade we aren’t looking to make predictions of future moves, we are just going to play the hand we were dealt.
Invesco QQQ Trust Series I (QQQ)
If this bullish move from yesterday and the pre-market today stay intact, looking toward Tech to lead the way is the sector trade we have on watch today.
This rally, even if short-lived, will be led by this sector as investors and traders rush back in to be a part of this move. That is why we have QQQ on watch today. With names like Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) making up the top holdings in the fund, should the trend break back to bullish, these names will be at the front of the pack.
Again, we will look for some follow though and confirmation before become too overzealous and jump in with both feet. Wait for a nice setup with one or two more confirmations, then decide if it is the trade you wish to make.
Watch the video where I breakdown the market and what could be ahead below!
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I look forward to trading with you, but until then, as always…
