January 18, 2016
Trades & Tutorials
By Geoff Bysshe
In my last post I hinted that the first day of the year can help you identify the initial trend of the year and it certainly did that this year. If you held off on any long traders until we had a confirmed break up over the first trade day of January, then this year’s ugly decline was easily avoided.
Now that the markets have spent the last two weeks falling, a bounce or consolidation may be near. The SPY, QQQ and DIA are all near obvious support based on price swings and IWM is near its trend line from the 2009 lows.
Additionally there is a second calendar based pattern that is now formed. You can find more on that here.
A bounce has not begun, nor have we seen any signs of capitulation, but it’s never too early to know what areas of the market are best positioned to move higher first.
In this video I’ll cover 4 sector ETFs worth keeping your eye on for either trades or indicators that the bulls are ready to step up.
