July 12, 2020
By Mish Schneider
Perhaps the most incredible aspect of the market and for traders, is the ever-changing landscape of investment opportunities.
I spend a lot of time telling followers that the rules have changed.
The relationships experienced traders hold dear have changed.
The metrics have changed.
The world has changed.
The younger generation has turned to socially conscious investing-something I cover in my book by the way.
Young blood and passion for trading has changed.
And I say, bring it!
As a result, I still rely on the tried and true Economic Modern Family. The Family never steers me wrong.
For example, Granny Retail XRT and her resilience kept us in our long positions and prevented us from getting bearish-no small feat if one looks at all the doom and gloom out there.
I have received comments on XRT and its weighting in e-commerce. Although true, it has other components that have lagged for years.
Besides, it hardly explains why XRT is consolidating in an accumulation phase, while AMZN soared to new all-time highs.
And as a balanced ETF, a retail chain like Big Lots for example, has a 1.54% weight in the XRT basket.
A boost in these components is good for the economy, and not just in the “Don’t fight the Fed” way.
Here are the top 10 Sectors in the XRT ETF:
Apparel & Accessories Retailers 15.97%
Discount Stores 14.96%
Other Specialty Retailers 14.48%
Auto Vehicles, Parts & Service Retailers 13.60%
Department Stores 12.05%
Internet Services 7.56%
Food Retail & Distribution 6.99%
Drug Retailers 5.47%
Computer & Electronics Retailers 2.92%
Leisure & Recreation 2.17%
What excites me most though, is the newer issued stocks in a myriad of sectors.
We seek not to trade Apple, Google, Regeneron and Netflix at these bloated levels, rather we wish to find the next Apple, Google, Regeneron and Netflix.
This week’s presentation on StockChartsTV is a 30-minute educational and actionable YouTube video
The video begins with a look at the Economic Modern Family, particularly why Friday ended up as such a clutch hold of support day.
From there, I give you an update on the stagflation indicators, gold, silver, copper, and agriculturals. You will see why we took some profits in our metals, while we continue to watch the grains base out.
Then, I cover one of my favorite emerging markets, Vietnam VNM.
The second half of the presentation takes you through a full analysis of seven newer stocks.
The list of stocks:
Huiz Holding HUIZ
Kimberly Royalty Partners KRP
Redhill Biopharma RDHL
Sangamo Therapuetics SGMO
For now, the primary focus is on healthcare and biotech. Plus, I give you entries, stops and targets in all these picks.
In the next few weeks, I will cover newer issued stocks in tech and clean energy.
Russell 2000 (IWM) 141 then 137 support 146.25 resistance
Dow (DIA) 262.45 resistance to clear
Nasdaq (QQQ) Missile to new highs again
KRE (Regional Banks) Reversal pattern confirmed Friday. One to keep watching this week
SMH (Semiconductors) 160 was my target, now hit. But if holds 155, could see higher
IYT (Transportation) 161.50 pivotal support 170 resistance
IBB (Biotechnology) 138.25 support
XRT (Retail) 43.40 huge support 45 resistance
Volatility Index (VXX) Nothing to see here unless it clears 35.00
Junk Bonds (JNK) 104.50 resistance 101.50 support
LQD (iShs iBoxx High yield Bonds) 134.90 support
Every day you'll be prepared to trade with: