Market Wars: The Last Jedi In A Galaxy Far, Far Away

With a meager $200 million budget, the third new Star Wars movie takes us to a “galaxy far, far away.” Heavily funded and clearly extra-terrestrial, the market transports the bulls to their own galaxy far, far away.

In the film, vivid characters take you through an action-packed adventure. Visual dazzle adds to the spectacle. In the market, vivid characters that impact short-term direction keep the action-packed trading opportunities aplenty.

Visual dazzle by the way of new all-time highs in the NASDAQ 100, adds to the market spectacle. As usual, the Modern Family (SMH, IYT, IWM, XRT, KRE, IBB) kept us apprised of every twist and turn.

The market plot, filled with villains and heroes, delivers soul-stirring, gut punches and yes, even humor.

So, now that many of us have added to the market’s gross profits, while many more will add to Star Wars’ ticket sales, where do we go from here? Last week I wrote, “Literally every day, the recent top performer of the Modern Family-Transportation (IYT), has broadcasted the day’s sentiment.”

Friday’s inside day (when the instrument trades in a range inside the day prior’s range) took us on a bit of a mind-bending journey. Incidentally, last week is also an inside week trading range from the week before.

Inside days are “pause” in the action days. They presume investor uncertainty. However, IYT has traded so technically perfect, that we can emphatically state that the “force” is with it.

Other family members had inside days last Friday as well.

Both Granny Retail (XRT) and Big Brother Biotechnology (IBB) gained, yet remained within Thursday’s range.

Whereas the Russell 2000 (IWM), Sister Semiconductors (SMH) and Prodigal Son Regional Banks (KRE) all closed Friday with higher closing prices than they had had on Thursday. Half the family optimistically paused, while the other half enthusiastically rallied.

Which half will turn out correct? The momentum (or force) is with Gramps and his Wonder Woman daughter, SMH.

However, what’s a great storyline without a villain? This week, let Transportation (or to keep with the analogy, the Millennium Falcon) be your Han Solo and guide you to the next galaxy.

S&P 500 (SPY) 265.22 pivotal. Through 267 better

Russell 2000 (IWM) 152 pivotal and through 153.25 better

Dow (DIA) Inside day with 244 the pivotal support to hold

Nasdaq (QQQNew highs and not overbought-so higher still? Probably

KRE (Regional Banks) Must take out and close over 59.10 and hold 57.00

SMH (SemiconductorsSaved by the Wonder Woman bell. Range still sits though between 100-96.50 to break

IYT (Transportation) 189.68 recent highs. Under 186.17 trouble

IBB (BiotechnologyThrough 107.50 see 110 at least. Unconfirmed bullish phase that has to confirm

XRT (Retail) Inside day and held the 200-week MA at 44.05

GLD (Gold Trust) The strong dollar is giving me pause on buying.

SLV (Silver) Outperforming gold, which is good. Must fill gap to 15.33

GDX (Gold Miners) 21.60 pivotal with a move over 22.32 better

XME (S&P Metals and Mining) Still in play with support at 32.70

USO (US Oil Fund) 11.00 support-the longer it holds the more I like it

TAN (Solar Energy) 23.30 best support

TLT (iShares 20+ Year Treasuries) 129.57 big resistance. Under 127 can see 125.50

UUP (Dollar BullClosed the week right on the 200-week Moving Average-pivotal

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.