$SPX $SPY Sector Breakdown

30 mar 2019

What a day - almost 1am and I'm finally done chart scraping. This is certainly a passion - hope you guys enjoy it.

Great trading week - really only made two trades all week. One non-eventful & the other was an entry on the 28th at 2800 with an exit today at 2827. For a gain of +12%. This was traded with an entry on this inverse head & shoulders.

When I trade patterns I will begin tweeting (@ZenMode10) the stats breakdown on them like I did this time:

--Inverse H&S--

• Break even failure rate: 10%
  
• Average rise: 45%
  
• Throwback rate: 64%
  
• Percentage meeting price target: 71%
  
• Highest on the left shoulder or head, diminished on the right shoulder. Trends downward 65% of the time.
  

Moving forward we will swiftly be exploring a TA snapshot on each sector, and then a focus on strictly the SPX.

Utilities

• Worst weekly performer
  
• 3 Month - +11.1% Return
  
• Top 6 Month Performance - 12.2% Return
  

TA on the chart appears bullish - but slow momentum.


Telecommunications

• Finally ended a downward trend, and trending sidways now.
  
• Clearly candidate for Iron Condor.
  

Technology

• 4th Place for 3 Month Performance
  
• 3rd Place for 6 Month Performance (0.3%)
  
• Current STOCH/RSI Indicates Bullish Swing Trade Candidate
  

Industrial Goods

• 2nd Place for 3 Month Performance +18%
  
• After a moonshot rise, it has been moving sideways
  
• RSI was eaten up for hardly any gain indicating this is loosing momentum
  

Healthcare

• Worst 3 Month Performer +10% Return
  
• Year to Date - 8.3%
  
• Boomers and unhealthy American demographic indicate a favorable macro environment
  
• In an Ascending Wedge with $93 Resistance
  

Financials

• Value - I have heard comments of value here, this is a fallacy.
  
• Fed's patient stance on rates & with a commitment to end QT in September make an unfavorable Macro Environment
  
• For a real recovery - historically financials are a leading indicator (they fund it)
  
• In the next big recession ('20,'21,?) Financials will certainly be better off than 2008
  
• Logic in the Swing Trade sees all RSI eaten up with a modest rally.
  
• Avoid this sector
  
• 2nd to last place - 3month performance
  
• STOCH RSI indicates bearish conditions
  

Energy

• Bullish Ascending Wedge (Favorite Pattern)
  
• America is now the major oil player - more dependence on the dollar/stronger dollar
  
• Talking heads on Bloomberg currently calling for 65/barrel EOY
  
• RSI indicates currently oversold
  

Basic Materials

• 13.4% 3 Month Return
  
• RSI indicates this will retest $95 resistance and then will drop back to $91 support
  

SPX Indicator Focus

Vortex - Bullish


Chaikin Money Flow - Bullish /Coppock Curve - Bullish

• Chaikin Money Flow - "The principle behind the Chaikin Money Flow is the nearer the closing price is to the high, the more accumulation has taken place. Conversely, the nearer the closing price is to the low, the more distribution has taken place. If the price action consistently closes above the bar's midpoint on increasing volume, the Chaikin Money Flow will be positive."
  
• Coppock Curve - Momentum indicator for long TF
  

Bollinger Bands

Was consistently moving 2 Standard Deviations away from the mean however it recently tested the 20day SMA and appears to be rising back to 2850/60



Volatility Index continues to coil back down - like a snake.



Moving Averages - Continue to be Bullish


Current Trend


Current position is entirely in cash - switching brokers to one that specializes in options. Assumptions are 2780/2880.

Good Luck Trading!

31 mar 2019

Nota