"Trading is a psychological game. Most people think they are playing against the market, but the market doesn’t care. You are really playing against yourself." Martin Schwartz
Good morning
We have a big week ahead with the summit between President Trump and Kim Jong Un, the FOMC announcement and press conference, headlines from the G7 summit and the potential trade war with our allies. We have a lot of economic data with CPI, small business optimism, PPI. jobless claims, retail sales, and consumer sentiment. It could wind up being a volatile week ahead if the Fed is extremely hawkish or things go terribly wrong at the summit between the US and N Korea. The economic data being released next week should be positive for the markets as long as the data indicates that inflation remains moderate.
There are few sectors I want to keep an eye on this week the home builders, consumer staples and the video gaming space are definitely on my radar. Also keep an eye on the recent IPO space especially the China IPO names as they continue to bring some heat just make sure you play them size appropriate for the amount of risk you are taking. HUYA IQ SOGO SE ICLK BILI BSTI
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GAMR Video Game Tech E3 Electronic entertainment expo happens this week there could be some action in the space This event may already be baked in as the sector has had a nice run into this event GAMR trades extremely thin and has been consolidating at all time highs for more liquidity consider individual names think HEAR ATVI EA TTWO MSFT ZNGA
IWM small caps currently overbought as it trades at all time highs a pull to the 50 day moving average would not be a shocker I still like small caps but a pause to refresh would be healthy
QQQ tech is consolidating and also in overbought territory, that overbought condition may be worked off through time as we continue to work sideways or drift lower
SMH semiconductors also overbought and in consolidation mode could have put in a near term lower high I would like to see some support around 105 or the 50 sma
IYT transportation is consolidating right on the 20 sma there are a lot of good looking charts in the ground shipping and trucking space ARCB SAIA CVTI UPS and FDX are just a few that come to mind
SPY SP500 also consolidating and overbought but if we can see consumer staples, financial, and the transportation sectors get a lift they could take the spy to new all time highs
XHB home builders I would be remiss not to include this sector with the FOMC meeting this week.The ETF broke over price resistance last week and closed right at the 200 day on huge volume we could see some follow through but I would not be shocked if we consolidated a bit first there are several names I like in the home building space
XLF Financial and Banks another sector that could react to the FOMC meeting whether or not the Fed comes across overly hawkish or dovish it is testing a downward trend line the stocks in this space tend to be thicker stocks and are more swing or long term hold plays in my opinion
XLP consumer staples has been on my radar for the last several weeks because it was sitting on some potential long term price support >on Friday the sector closed above the 50 day and the 50 dolla holla. There could be some follow through and money flow into the space as a potential value play for big money managers. Stocks in the space tend to be big thick stocks that are more swing or long term hold plays KHC P&G however there are also some smaller packaged food plays that could be interesting short term trade opportunities there could be some M&A activity in the space as well with many names being beat down recently
XLY consumer discretionary has been red hot > specifically the dining space we could be looking at a double top as the sector is also in overbought territory
XRT retail another overbought sector that has had an impressive run. Retail sales numbers are out on Thursday morning the sector was able to take out some potential price resistance and is trading near all time highs. We should find out soon it it will be a double top or if we can break and hold above all time highs 51 is a key spot to get through
XLE Energy was a very hot sector for a couple of months when oil had a very impressive run but over the last couple weeks the sector has been lagging as oil has pulled back it may need more time to consolidate and absorb the recent mover higher after putting in a double top.
Sample stocks on the Radar from this weeks Pro Member Stocks to watch video
$DIS $HOME $LXRX $RUN $VRAY
Next Weeks Economic Calendar
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Anticipated Earnings
Source Earnings Whispers
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