JFarrish Nov 17

 

MARKET OUTLOOK:  November 17th The S&P 500 index tested the move above the 2170 resistance and today we watch to see how it unfolds. The futures are higher currently and should it hold throughout the day we may eclipse the previous highs. The headlines remain focused on the Trump transition to president and what that means for the markets looking forward. For the last two weeks, it has meant gains based on anticipated spending and changes. Semiconductors (SOXX) are the latest to make a move through resistance gaining 3.4% on Wednesday. I continue to watch for the trends to develop and the consolidation breakouts... up or down. The S&P 500 index held the move above the 2170 level despite the split decision in the sectors... four up and six lower. The leaders were technology (XLK), consumer discretionary (XLY) and telecom (IYZ). Financials led the downside as some profit-taking crept into the sector. Energy (XLE) struggled again with the price of crude moving lower and utility (XLU) sold of the Tuesday gains. Technically the market remains in a position to resume the uptrend from a longer term view and reverse the short-term selling trend started off the October highs. Sustainability of the move is the big question looking forward... thus, stops in place and take what the market gives. The scans for Wednesday's activity show some laggards bouncing like China (FXI), tech (XLK), Greece (GREK) and Treasuries (TLT). If you step back and look at the charts over the last two weeks you find the leaders going vertical on the Trump speculation, the movers making moves based on data, and the laggards which have stayed in their respective trading ranges looking for a catalyst to move higher. Then, of course, there are the loser which have accelerated lower on the speculation of the election. The goal is to find what works best with your defined strategy and trade with discipline. The trend shift in sectors is causing some frustration to investors as they continue to ask why versus following the leadership short term. The why is based solely on belief currently and as the belief spreads money moves. For now, money is flowing towards the belief that financials, biotech, and higher interest rates will benefit from a Trump presidency. True or not? Only time will tell! Take what the market gives with a defined strategy and risk management as the decision factors.  >>more Modest test for the markets overall Jimsnotes.com was created by Jim Farrish with the goal of educating investors about trading with discipline.  Jim knows the risk of losing money will increase without disciplined trading strategies, and current market analysis.  Always invest according to your own risks, disciplines and objectives. Jim's Notes 321-255-1995 |  Jim@JimsNotes.com | JimsNotes.com 2101 South Waverly Place, Suite 200-A Melbourne, FL 32901 LIKE US ON FACEBOOK Not a Subscriber Yet?  Order Now