Sector performance

Last week we saw a slight shift in sector rotation as money pulled out of the Consumer Goods and Conglomerates and found its way into Technology and Financials. Basic Materials took a hit last week and Monday as selling continued in that sector. Energy stocks were split giving no real moves in the energy sector as a whole.  A few refiners still remain strong so it mixed for Oil names. Today was a mixed bag of tricks to begin the week as the Financials squeaked out a small gain along with Consumer Goods . Technology is trying hard to pick up the pace and gain some much needed ground to support the $SPX 1517 levels.

XLB ~ Basic materials struggle to gain its lost ground from last week but the trend is still very strong. My theory is the energy stocks are so fragmented that the XLB / XLE needs to rest and regroup for another leg higher.  Bascic materials (XLB)  should  get lifted as XLE breaks out upon a well synchronized energy rally. The TradersThinkTank Model is long XLE. See the “Decision Making” TAB.

XLB

Below we see the Financials (XLF) are still strong and slowly grinding higher.

XLF

Below we see the Technology ETF (XLK) which is heavily weighed with AAPL, MSFT, IBM, T and GOOG. It’s finally starting to breakout and can pick up steam any day with a big range expansion move higher.  RSI is showing momentum now as the ranges have been squeezed for weeks and months. I expect a big move and if these charts tell us anything, it should be higher.

XLK

Nick Pirraglia

TradersThinkTank

@Liquid_Trader

About Nickolas Pirraglia

Nick Pirraglia started his career in trading in 1991 after returning to the US as an Army Officer deployed in Iraq. He began as a bond broker and worked his way into trading. Expert mentoring, hard work and a disciplined approach to the markets has allowed Nick the ability to maintain a very successful career in Capital Markets and Trading for over 20 years as a professional OTC Market Maker and independent trader. Nick has also managed the trading desks for a two Dallas based capital management companies and traded equities for a Dallas based hedge fund. Nick has trained and mentored thousands of customers in the rigors of trading, technical analysis and risk controls. Recently, Nick had broadened his market experience through the design and product management of two automated trading platforms. He has the pleasure of working with some of the brightest minds in the trading community and has collaborated with experts in data, design, engineering and trading psychology. An avid long distance runner, Nick completed several marathon events, qualified for the Boston marathon, completed several long distance Triathlons to include finishing a full Ironman triathlon.
This entry was posted in Trader and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s