Prepare for the funds to start window dressing their quarterly and 6 month reports
This is one of those points in the year, where the funds become very concerned by their performance. So much so, that they’ll start what is commonly known as ‘window-dressing’ their portfolios with all the right stocks so that they can show their clients just how incredible they really are. So there is a good chance, with the year that the market has had, that we’ll see a steady trickle higher into the end of month as the street tries to play catch up.
Pulling up the S&P 500 (SPX), things actually look fairly good going into the week from a technical standpoint. Strength continues at the 20-day moving average, and the rising channel off of the 5/31 lows is in play as price managed to bounce off of its trend line.
VIX continues to drop, and with futures trading higher in the pre-market, there is a good chance that the indicator drops below 10 and into the 9’s once again.
The T2108 continues to struggle to show where stocks are keeping up with the market’s move higher as only 54% of stocks are trading above their 40-day moving average. Historically, when the market is trading at all time highs it will be between 70-80%. That hasn’t been the case at all of late and represents a bearish divergence in the market – and something you should concern yourself with.
And of course, Oil (USO) is a disaster for this market as the major lows from February of 2016 looks to be the next logical destination for the commodity in free-fall.
Gold (GLD), meanwhile, continues its sideways chop to nowhere from the pat two years. I don’t see a trade setup there at all.
Lets get after this market this week, and add to the fine year we have already had to date.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance:
- 5 Long Positions
Recent Stock Trade Notables:
- Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit.
- Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit.
- IBB: Long at $298.24, closed at $303.74 for a 1.8% profit.
- SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss.
- Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit.
- Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit.
- Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit.
- American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
- Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit.
- Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
- Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss.
- Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
- SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
- JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
- Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
- Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit.
- Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.
- Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit.
- Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit.
- Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
- Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit.
- Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit.
- Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss.
- Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
- Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
- UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit.
