This week was filled with some decent trading action. Most of the action is being found in individual stocks and sectors, and not in the indices. The ranges in the indices have not been large and volatility has dried up a bit. Volume was lackluster all week, until Fridays poor economic data and rumors of a downgrade in some Euro Zone nations in the morning session data gave us a kick start. S&P did however downgrade 9 Euro Zone nations, but it happened after the markets were closed. Many believe that this has already been priced into the market, so going forward the short term market direction most likely will be dictated by the earnings reports. With earnings season just getting started we should expect volume to pick up after this holiday weekend and volatility also.
Looking at the sector rotation chart for the week, we can see that the energy stocks took a hit. The chart of the $USO was pretty extended and a lot of the price action was driven up on the news regarding tensions in Iran. From a technical perspective though $USO was extended and was due for a pullback. Material stocks, financial stocks, and industrial stocks benefited the most this week as they saw positive gains across the board. One sector that is going off on a lot of peoples radars is the agriculture sector. We will be focusing on this sector next week as they look to be warming up more. Solar stocks got a nice pop last week along with stocks that were underperforming and now are getting short squeezed from the shorts that have overextended there stay.
Aside from that it is a stock pickers market, so be sure to join us in TheTradersRoom.Com/ Password: Remote so that you can be in the RIGHT stocks at the RIGHT time. Also I have added a new banner that you can click on that takes you to the company site and provides you with more information for those that are interested in trading with our firm. We also have educational training that can be offered as well and accounts can be open right online. Enjoy your weekend and lets get ready for some FOOTBALL !!!
**Weekend Market Technical Analysis YouTube videos are back into effect and will be up by Sunday Midnight **