July 30, 2015 RS Movers

Broad Equity ETF RS Gainers7-30-2015 Broad Equity ETF RS GainersBroad Equity ETF RS Gainers on FINVIZ

Broad Equity ETF RS Losers7-30-2015 Broad Equity ETF RS LosersBroad Equity ETF RS Losers on FINVIZ

Sector ETF RS Gainers7-30-2015 Sector ETF RS GainersSector ETF RS Gainers on FINVIZ

Sector ETF RS Losers7-30-2015 Sector ETF RS LosersSector ETF RS Losers on FINVIZ

GT500 RS Gainers7-30-2015 GT500 RS GainersGT500 RS Gainers on FINVIZ

GT500 RS Losers7-30-2015 GT500 RS LosersGT500 RS Losers on FINVIZ

There are many valuable ways to look at Relative Strength; some of my favorites are patterns of strength and weakness, and big RS movers over short periods.  The movers list also gives clues of rotation through large point moves and clustering.  This is just a starting place for your research, so get to it!

*I specifically decided not to filter out low volume ETFs, because I believe they can add valuable information even if not liquid enough to trade.

The explanation of my methodology is here

If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

The Nitrous Scan 7/30/2015

Z06 vette

ETF Nitrous Scan7-30-2015 Nitrous ETF Scan

ETF Nitrous Scan on FINVIZ

The Nitrous Scan7-30-2015 Nitrous Scan

Nitrous Scan on FINVIZ

More about how I came up with this scan here and here.
If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth here was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

July 29, 2015 RS Movers

Broad Equity ETF RS Gainers7-29-2015 Broad Equity ETF RS GainersBroad Equity ETF RS Gainers on FINVIZ

Broad Equity ETF RS Losers7-29-2015 Broad Equity ETF RS LosersBroad Equity ETF RS Losers on FINVIZ

Sector ETF RS Gainers7-29-2015 Sector ETF RS GainersSector ETF RS Gainers on FINVIZ

Sector ETF RS Losers7-29-2015 Sector ETF RS LosersSector ETF RS Losers on FINVIZ

GT500 RS Gainers7-29-2015 GT500 RS GainersGT500 RS Gainers on FINVIZ

GT500 RS Losers7-29-2015 GT500 RS LosersGT500 RS Losers on FINVIZ

There are many valuable ways to look at Relative Strength; some of my favorites are patterns of strength and weakness, and big RS movers over short periods.  The movers list also gives clues of rotation through large point moves and clustering.  This is just a starting place for your research, so get to it!

*I specifically decided not to filter out low volume ETFs, because I believe they can add valuable information even if not liquid enough to trade.

The explanation of my methodology is here

If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

The Nitrous Scan 7/29/2015

ETF Nitrous Scan7-29-2015 Nitrous ETF Scan

ETF Nitrous Scan on FINVIZ

The Nitrous Scan7-29-2015 Nitrous Scan

Nitrous Scan on FINVIZ

More about how I came up with this scan here and here.
If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

The Nitrous Scan 7/28/2015

ETF Nitrous Scan7-28-2015 Nitrous ETF Scan

ETF Nitrous Scan on FINVIZ

The Nitrous Scan7-28-2015 Nitrous Scan

Nitrous Scan on FINVIZ

More about how I came up with this scan here and here.
If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

July 28, 2015 RS Movers

Broad Equity ETF RS Gainers7-28-2015 Broad Equity ETF RS GainersBroad Equity ETF RS Gainers on FINVIZ

Broad Equity ETF RS Losers7-28-2015 Broad Equity ETF RS LosersBroad Equity ETF RS Losers on FINVIZ

Sector ETF RS Gainers7-28-2015 Sector ETF RS GainersSector ETF RS Gainers on FINVIZ

Sector ETF RS Losers7-28-2015 Sector ETF RS LosersSector ETF RS Losers on FINVIZ

GT500 RS Gainers7-28-2015 GT500 RS GainersGT500 RS Gainers on FINVIZ

GT500 RS Losers7-28-2015 GT500 RS LosersGT500 RS Losers on FINVIZ

There are many valuable ways to look at Relative Strength; some of my favorites are patterns of strength and weakness, and big RS movers over short periods.  The movers list also gives clues of rotation through large point moves and clustering.  This is just a starting place for your research, so get to it!

*I specifically decided not to filter out low volume ETFs, because I believe they can add valuable information even if not liquid enough to trade.

The explanation of my methodology is here

If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

The Nitrous Scan 7/27/2015

ETF Nitrous Scan7-24-2015 Nitrous ETF Scan

ETF Nitrous Scan on FINVIZ

The Nitrous Scan7-27-2015 Nitrous Scan

Nitrous Scan on FINVIZ

More about how I came up with this scan here and here.
If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

July 27, 2015 RS Movers

Broad Equity ETF RS Gainers7-27-2015 Broad Equity ETF RS GainersBroad Equity ETF RS Gainers on FINVIZ

Broad Equity ETF RS Losers7-27-2015 Broad Equity ETF RS LosersBroad Equity ETF RS Losers on FINVIZ

Sector ETF RS Gainers7-27-2015 Sector ETF RS GainersSector ETF RS Gainers on FINVIZ

Sector ETF RS Losers7-27-2015 Sector ETF RS LosersSector ETF RS Losers on FINVIZ

GT500 RS Gainers7-27-2015 GT500 RS GainersGT500 RS Gainers on FINVIZ

GT500 RS Losers7-27-2015 GT500 RS LosersGT500 RS Losers on FINVIZ

There are many valuable ways to look at Relative Strength; some of my favorites are patterns of strength and weakness, and big RS movers over short periods.  The movers list also gives clues of rotation through large point moves and clustering.  This is just a starting place for your research, so get to it!

*I specifically decided not to filter out low volume ETFs, because I believe they can add valuable information even if not liquid enough to trade.

The explanation of my methodology is here

If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

A Case for Utilities

7-27-2015 10-10-51 AM featured pic

Since peaking in February Utilities have been one of the worst performing sectors in the equity markets; at one point down over 17% at the lows.  There is a good bit of this that is tied to the fear rising rates coming sooner than later.  This has been one of the big clouds over most interest rate sensitive areas so far this year.  Most know I am in the camp of “lower longer” when it comes to the FED which would mean the year to date action in these areas could turn out to be a bit of an overreaction.

There are quite a few ifs that are necessary for this idea to play out, but we are already basing and a potential breakout in $TLT last week which makes me think it might start leaking over into these other sectors.  Real Estate and Utilities are two good places to look. Let’s start with Utilities using $XLU as our proxy.

From a Relative Strength Perspective the sector remains a laggard, but has began to come off the lows in recent weeks.

7-24-2015 Sector Proxy ETF RS Rankings 7-24-2015 EW Sector Proxy ETF RS Rankings

The sector has been mostly ignored in recent action, but when I was looking this weekend the dual view RSI chart caught my attention.
7-26-2015 8-22-47 PM XLU dv

Quickly, the two major trendlines jumped out.  On the weekly, the sector bottomed right at a 3+ year longterm trendline and reversed.  That trend line also happened to converge with a long term horizontal level as well (not marked). Then glancing over to the daily we can see that surge off the lows initiated a break of the daily trendline.  Shortly after testing that line again produced another bounce couldn’t withstand the broad market pressure leading to another even deeper trendline backtest which also corresponds with the 61.8% fibonacci retracement off the recent lows.  Friday’s doji right on that backtest hints we could see a change in direction near here.  If that were to happen it could be forming the right shoulder of a bullish Inverse Head and Shoulders pattern.  Switching views let’s see how other indicators are shaping up..

7-27-2015 9-20-34 AM XLU esig dv

Here the weekly chart is still in a rough spot below the middle Bollinger Band and potentially building a bearish flag, but the large MACD Histogram divergence also stands out if some positive price action materializes.  On the Daily here we can see the middle Bollinger Band has turned up even though price closed the week below it.  A remounting of this average would be a solid sign for more and further building that right shoulder.

One last chart I wanted to view was the Weekly moving average chart with OBV (On Balance Volume) to show how the participation has been during this pullback.

7-27-2015 8-09-12 AM XLU Wkly OBV

The OBV indicator shows participation in a long term uptrend and also breaking the short term down trend on the recent move off the lows.  We also see all the long term moving averages are still steadily rising and the 100sma is currently providing some support as it has many times previously during this uptrend.

To be sure, this scenario is still very early in its development and could fail to materialize at all, but there are some signs of life worth paying attention to.  For those who want to get in early, they can buy on a reversal candle and put a stop below the recent lows for a less than 4% risk.  A more conservative play would be to wait for the Inverse Head and Shoulder pattern to break and then use a close below the right shoulder as a stop.  Either way you have well defined levels to work with which is the key to a good trading plan. I think things are starting to align for some improvement and for those inclined you can enjoy the 3.7% yield while you are waiting.  There are various ETFs you can play the sector with, I chose $XLU for my example as it is one of the largest and most liquid in the space.

7-24-2015 Utilities ETF RS Rankings

Now I know some don’t like ETFs and would rather play the strongest names in the sector on any improvement.  That is fine.  below you will find my relative strength lists with FINVIZ links for the sector to help you in that search.  Don’t get stuck on the long list of the whole sector, once you find out where you want to fish, the subsector lists will likely provide more value.

Utilities Subsectors
7-24-2015 Utilities SS RS

Utilities Relative Strength7-24-2015 Utilities Sector RSDiversifed7-24-2015 UT DiversifiedSector RS

Diversified Utilities FINVIZ

Electric7-24-2015 UT Electric SS RS

Electric Utilities FINVIZ

Gas7-24-2015 UT GasSS RS

Gas Utilities FINVIZ

Water7-24-2015 UT Water SS RS

Water Utilities FINVIZ

On top of the interest rate sensitive nature of Utilities, they are also considered a defensive sector by all measures; and could also be a decent place to park some money if we do fall into a correction sometime this fall as many believe we will.  I am not fully in that camp right here, but it certainly doesn’t hurt to have some defensive ideas in the playbook, especially ones that look to be setting up for a move as well.

Good Luck and I hope this helps!

If you like what you see, follow me on StockTwits or Twitter.
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

July 26, 2015 Strength In Numbers

12-23-2013 Cover Graphic

*If you are not on the email list and would like to review the full report each week, please email me at gtlackey@gmail.com and I will add you to the beta list.  Please include your Stocktwits or Twitter handle in the email if you have one.  You will receive a weekly email with the password to log in to the report and any updates during the week.  I do not share your email with anyone at any time.*

For more background on this report check out Strength In Numbers Explained.  Previous reports can be read here.

Macro Relative Strength

7-24-2015 Intermarket RS

Intermarket ETF on FINVIZ

7-24-2015 Equity Size & Style ETF RS Rankings

Size & Style on FINVIZ

It was a tough mental week for traders and investors as the markets gave back last week’s gains which quickly took the wind out of the New High talk while ratcheting up the volume on the top calling.  To be sure, the action was not positive, but by Friday we saw fear spiking once again with the markets just a couple of percent off the highs and still within the trading ranges we’ve been in most of the year for all the majors…well kinda.  $QQQ broke out of its range on the big move last week and remained above that range through the end of this week.  Actually, the $QQQ didn’t even give up half of last week’s gains and is currently back testing it’s breakout.  If the back test doesn’t hold (an overthrow for a day or two would not surprise me, so give it a little room), then the others will have likely broken down out of their range and the correction can begin.  If it does hold, then I believe we could see all the majors make new highs in the coming weeks.  As we will see below, the markets are getting more narrow, but remember, that can last for a while before we see major tops in the cap weighted indexes.

The relative strength structure of the Intermarket list is still acceptable, but teetering with $QQQ holding the top spot, but the other three are slipping and $IWM is sitting in the middle.  After this week’s action in small caps, it’s no wonder.  Bonds were the only green in this list for the week as investors chose relative safety plays to hide out.  Of course, commodities were the big story as most of them lost big for the week.  Even agriculture commodities have not been able to avoid the mess.  Overall, it proved to be a tough environment this week.  I think it was somewhat masked until Friday by the strong big cap moves off earnings for a few marquee players like $AMZN while the rest of the market withered behind the scenes.

From a broad view though, nothing great came out of the week, but nothing pivotal either.  Looking at the Equity Size & Style list, we can see it is a little of a mess right now, but Large growth continues to lead overall and other growth segments are still hanging high on the list.  It is my experience that when growth is leading, the markets may narrow and/or correct, but don’t often see major tops in the immediate future.

We go into next week with some caution, but also realizing the fear spiked quickly again which has been a harbinger for trend continuation up to this point.  I still give the markets a decent chance to hold these ranges and give this fear a chance to work again, but each test does increase the likelihood of an eventual break which in this case would be down.  That same idea goes for the topside as well.  Definitively breaking these ranges holds the key to our next move.

Sector Relative Strength Rankings

First, I look at the Custom Indexes that I use for all the breadth work to see what they are telling us on a price weighted basis.

7-24-2015 Broad Sector CI Relative Strength 7-24-2015 Subsector CI Relative Strength

Next, I look at a Broad Sector ETF Proxy which I use Vanguard ETFs to make sure things are similar and for some tradeable ideas.  Below that is the Equal Weighted version for comparison.

7-24-2015 Sector Proxy ETF RS Rankings 7-24-2015 EW Sector Proxy ETF RS Rankings

This will differ a little due to the different make-up of the Capitalization Weighted ETFs.   If you click on the table (or here), it will take you to a page that will go much deeper into the Sector ETF Relative Strength.

Top 30 Sector ETF RS Rankings7-24-2015 Top 30 Sector ETF RS Rankings

Top 30 Sector ETF RS Rankings on FINVIZ

Bottom 30 Sector ETF RS Rankings7-24-2015 Bottom 30 Sector ETF RS Rankings

Bottom 30 Sector ETF RS Rankings on FINVIZ

When you break the markets down into bite size pieces like we do here, there is always some green to find.  This week that green was mostly in the Real Estate segments and Medical Equipment.  That’s it.  Real Estate is not where many have been looking for it to come from as the fear of rising interest rates has remained elevated, but this week those charts held well while others crumbled helping it make some headway up the relative strength list.  I have favored Real Estate for a while as a play on the “lower longer” interest rate idea, but until now it hasn’t impressed.  This week’s hold was a good sign we might finally want to start paying more attention here.  On the other end of the spectrum, many energy and basic materials segments were in freefall after weakening in recent weeks.  They are handily oversold at this point and may be ready for a bounce, but relative strength won’t tell us that; we have to wait until we get down in the breadth world to size up any short term potential.

Like the rest of the markets, the four horsemen we spoke of last week didn’t perform this week and some lost a little ground relatively.  Not detrimental, but the best performance will likely come when these sectors are back at the top.  It is also worth noting the two sectors that made the most headway this week were Real Estate and Consumer Staples which are not exactly the most offensive plays.  I look at this action as another caution showing in the markets, but also see these sectors as opportunities while the broader markets are choosing a side.

It was a tough week in most sectors and subsectors as well with overriding signs of caution in the performance which makes sense when you have a 2%+ down week.  If it can get follow through, we continue to throttle back risk and look for more defensive opportunities to outperform at least on a relative basis, but also potentially on an absolute basis since the long term broad market trend has not turned bearish.  Rotation is likely to continue until more confirmation the money is ready to leave the markets all together for now.

Broad Market Breadth

Universe of 3,070+ stocks from 10 custom broad sectors and 49 subsectors.  Universe contains only stocks (that are both optionable and shortable) with no Preferred stocks, CEFs, ETFs, or UITs to skew the breadth measurements.  There is a breakdown of the universe in the powerpoint presentation link at the top.

The New High-New Low Differential7-24-2015 Universe NHNL

The Advance Decline Line7-24-2015 Universe AdvDecLine

The McClellan Indicators7-24-2015 Universe McClellan

The Moving Average Breadth7-24-2015 Universe MA Breadth

Breadth Thrust Indicator7-24-2015 Universe BreadthThrust

Percent Days7-24-2015 Universe Percent Days

Last week the breadth was the area that kept us grounded as it was showing mixed messages.  It wasn’t confirming the strength, but also wasn’t sick enough to foretell imminent weakness.  It remained stuck in the middle as we have been for so much of 2015, just kind of bobbing along.  The negatives are growing, but still not busting out.  Even if we do get stronger breadth signals to sell, we must remember that as with any technical signal, price needs to confirm before we take action on them.

Positives:

1. Breadth Thrust Indicator went from highest reading since February back to extreme without price making a new low similar to December 2014 or January 2015.

2. McClellan Oscillator is nearing extreme reading for 2nd time this year and this month.

3. No Percent days on the downside during this pullback.

4. Custom Index still above the last breakout of the previous range.

Concerns: 

1. NHNL Differential has triggered all 3 sell signals as it drops below last October levels pulling both moving averages negative as well.  New lows spiking, but lack of new highs is the real culprit.

2. Advance Decline Line making another lower low as it is trending down.

3. MA Breadth reading failed at the midway point and are all heading down again.

4. McClellan Summation is working on it’s 2nd failed signal since losing the flatline.

This week market participation took a decided hit in many areas, especially the mid to long term readings finally breaking the malaise they have been in most of the year.  This action puts the markets at a more critical spot.  It can be decidedly bearish if it builds on itself, but when in bull markets, that bearishness doesn’t play out very often.  In fact, in bull markets these end up being the buy signals everyone is looking for.  Of course, we won’t know until things play out a bit more.  There is nothing wrong reigning things in and taking a wait and see attitude the shorter your time frame, but longer term broad market investors only have half the equation so far.  Some longer term breadth sell signals, but no price action confirmation so far.  This sets us up for either a quick slip’n’slide like we saw last October or another V-bottom most of the times we have seen breadth weakness during bull.  Anyone who tells you they know which it will be doesn’t, but we are close to well defined levels in many broad market readings and short term breadth readings are nearing oversold extremes.  This tells me that IF we see positive price action near these levels, it could just be another range test in the longer term uptrend.  With well defined stops just below the range lows, it should provide a solid risk reward opportunity.

Broad Sector Breadth

This can give us a first level view of the flow within the broader market.  It is a true measure of the markets’ breadth.

Broad Sector Advance Decline Line7-24-2015 BSec AdvDec Line Dashboard

Broad Sector Moving Average Breadth7-24-2015 BSec MA Breadth Dashboard

Broad Sector McClellan Charts7-24-2015 BSec McClellan Dashboard

Broad Sector Breadth Thrust7-24-2015 BSec Breath Thrust Dashboard

The New High – New Low Differential7-24-2015 BSec NHNL Dashboard

Clicking on the highlighted links will go to a page with the dashboards for the Subsectors.

The poor action this week in the broad markets was widespread as we saw above in the relative strength lists, it also took a toll on the internals in many sectors.  The idea the markets have been narrowing is true, but a look here shows it does seem to be much more pronounced in some sectors like Energy and Basic Materials; until this week when the new lows started to grow across various sectors and the weakness infiltrated most of the readings above.  The stronger sectors are still looking okay on most long and intermediate term breadth measurements and the short term readings started hitting some watch areas this week.  The Breadth Thrust Indicator shows this action the best, and if you click through the dashboard above, you can see this indicator for all 49 subsectors as well.  When this many align in extremes, we are usually near a decent bounce and every new leg starts with a bounce…

If you want to play in sectors right here, you have two distinct scenarios to attempt.  You can buy recent strength that has pulled back during this but still holding strong breadth and relative strength like Financials, Health Care and still potentially Technology or Consumer Discretionary depending on their action off the lows; or you can monitor washed out sectors and make a plan to take advantage of the snap back potential.  The latter is only for the most nimble traders, those with long time frames and/or deep pockets.  Basically, it is not an easy trade to handle, but can be very profitable if you can find your edge.

Don’t forget the Breadth Compilation Charts allow you to view all the relevant breadth indicators on one chart for each sector as well as the entire universe.  One thing to look for is when breadth extremes line up in multiple indicators on a chart.

Final Note:  This is a tough spot in a not so easy market environment.  There is nothing wrong with waiting until the smoke starts to clear and finding your spots then.  These markets have frustrated many people for a good bit of 2015 without really going very far.  Step back and try to take a fresh look at where we are and let the action lead you from here.  I like to work on confluence, and that is just not there right now.  When we really start to take a definitive direction, you start to see things align early enough to still catch a good chunk of the move.  All of that said, if we do see positive action near support early this week, make sure you are open to recognizing that too.

Have a great week!

G. Thomas Lackey Jr, CMT CFP® CFS

Follow me on StockTwits and Twitter @gtlackey (All market data above are derived from Stockcharts.com, Esignal, and Reuters Datalink)

The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed, constitutes a solicitation by us of the purchase or sale of any securities or commodities.  There is no guarantee that the views expressed in this communication will become reality.  Investing in the stock or bond markets involves risk and potential loss of principal.  Investment strategies should be thoroughly vetted and discussed with a financial advisor prior to implementing.