Are We In A Bull Market? 1 Sector To Watch If So…
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After hitting a bit of a turbulence brought about by the collapse of SVB and others, the market looks back on track to make a move higher. Barring any type of massive reversal in Friday’s session or next week, the S&P’s next stop should be 4200. At the time of writing, futures on SPX, /ES, sits at 4176 in pre-market.
Translation: things look pretty bullish right now. In yesterday’s edition, we were cautious of a push higher as we are currently at resistance and traveling into an old supply zone on SPY. However, the strength of yesterday’s buying, as well as the broader context of the trend over the past few months, we don’t think it is too unreasonable to assume this rally can continue.
We urged caution because hedge funds started short positions in massive amounts. But, it is unclear their plan with these ie.) expiration, risk management.
In any case, our next sector led the pack yesterday and we think this makes it worth a look today.
Communication Services Select Sector SPDR Fund (XLC)
Over the past month, the XLC has gained over 6.5%. This would have been just the kind of trade we looked for with my Smart Trades trading service. The follow through to the upside would have worked well with our slower approach to trading.
This follow through is due to stocks like Meta (META) and Google (GOOGL), which have both climbed over 7% during that time. If the rally continues to have legs, this is one sector that will remain firmly at the top of the pack.
To this point, you should also keep an eye on these individual stocks, the strength (or weakness) of this sector ETF largely depend on these two stocks that combine to be over 30% of the fund’s overall holdings.
If you want to learn more about my strategy and how we find trades that net us over 100%, you’ll have to join my Smart Trades options trading service today! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today!
I look forward to trading with you, but until then, as always…
