Sector rotation is the action of shifting investment assets from one sector to another to take advantage of cyclical trends in the overall economy in an attempt to beat the market. Sector rotation seeks to capitalize on the theory that not all sectors of the economy perform well at the same time because sectors of the stock market perform differently during the phases of the economic and market cycle.
For example, defensive sectors such as consumer staples, utility and health care stocks tend to outperform during a recessionary phase, while consumer discretionary and tech stocks tend to fare well during early expansions.
When you trade, you want the strongest stocks in the strongest sectors, which is why you should monitor sector performance carefully. With that said, lets determine the relative strength of the sectors relative to the S&P 500 ETF, SPY for the upcoming week.
Communication Services (XLC)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Energy (XLE)
Financials (XLF)
Health Care (XLV)
Industrials (XLI)
Materials (XLB)
Real Estate (XLRE)
Technology (XLK)
Utilities (XLU)
Based on the moving averages and the last daily closing price, relative to the moving averages,
the SPDR sectors’ relative strength, relative to the SPY are the following:
Some of the world’s currencies are accepted for most international transactions. The most popular currencies are accepted for most international transactions are the U.S. dollar, the euro, and the yen. However, the U.S. dollar is the most popular.
And in the foreign
exchange market 90 of forex trading involves the U.S. dollar. Thus, when
assessing the relative strength of the most popular currencies in the world,
it’s always against the U.S. dollar, using the dailytime frame chart.
The “major” forex
currency pairs are the major countries that are paired with the U.S. dollar
(the nicknames of the majors are in parenthesis).
AUD/USD – Australia dollar (Aussie) vs. the U.S. dollar
EUR/USD – Euro vs. the U.S. dollar
GBP/USD – British pound (Sterling or Cable) vs. the U.S. dollar
NZD/USD – New Zealand dollar (Kiwi) vs. the U.S. dollar
USD/CAD – U.S. dollar vs. the Canadian dollar (Loonie)
USD/CHF – U.S. dollar vs. the Swiss franc (Swissie)
USD/JPY – U.S. dollar vs. the Japanese yen (the Yen)
Based on the moving averages and the last daily closing price, relative to the moving averages,
the currency relative strength relative to the US dollar is the following:
Two Weeks Ago
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.
I’ve been keeping an eye on the weekly chart of Bitcoin and some other big cap coins. Starting this week they all looked a bit extended and I was 50/50 on whether price would push higher.
For a while price did, but with the sell off in recent days you can see price is digesting the prior move (or maybe purging).
A Bigger Picture
Looking at this weekly chart of Bitcoin we see what is a huge reversal type candle that will be formed unless we get a sick rally in the next 8 hours.
That upper wick is one of the biggest I have seen and shows sellers came in hard above the 11,500 area, which ironically was my upside profit target when BTC pushed above 10k.
It’s hard for me to get long when seeing this type of price action on the larger timeframe.
There was a rule that I was taught often back when I was a full-time equities trader.
Larger Time Frames Dominate
Conclusion
This is not to say price cannot go higher in the near-term. In fact price could rally 1k or more points and still technically not breach the reversal candle.
It is a warning signal though – that price has a higher probability of moving lower before it moves higher over the next week.
I’m trying to decide if I want to lighten my BTC position or not to be honest.
In yesterday’s update, I told you bitcoin looked ready to make a larger move. Since that time, we’ve seen it drop over $1,000. Price found some support at the ascending support line we’ve discussed.
Zooming out on the weekly chart, we can see we’re still trading above the upper Bollinger band. I’d like to see this week’s candle close above $11,500 later today. That would denote a major break above the prior resistance set back in January/February of 2018, which would likely signal continuation to the upside. As of now price has dropped below $11,500, trading at $11,100 on Coinbase.
In today’s video I discuss, where price may go from here, traps to avoid, key areas to watch and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading.
Workin
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Soon
we will give people applying for Liberland citizenship also an option
to become members of different other organisations that are currently
active. Am I missing something important? Chamber of commerce Flight club and school Lawyers association Liberland Rotary club Aid foundation Association of Liberland free trade zones and villages Liberland venture club Esports association Yachting club Chess club Musicians of Liberland Crypto and blockchain club Kayak club National soccer team Liberland jobs Naturists association144
Liberland US Representative Dave Molineaux addressed the gathering and the Liberland USA team networked at this key event in Washington, D.C. where Block.one unveiled the new VOICE platform.
You want an update? You got it! Another great Liberland news show from Liberland Polska! Covers our Uganda trip, Washington Elite Summit, the first Serbian Dinar-BTC purchase on our Xcalibra exchange, Liberland Aid Foundation, and more! As always, turn on subtitles if you don’t understand.
In Elliott Wave terms, TokenCard began a wave one advance on January 28. The red wave one (blue sub-waves i-ii-iii-iv-v) finished on March 1, and the red wave two (blue sub-waves a-b-c) correction ended on May 20. If this wave count is correct, TokenCard should be heading next towards the March 1 peak in the red wave three.
Bitcoin has been on a tear in the past week – ripping up then right back down again -volatility is certainly back! The bull trend seems confirmed though sharp/steep corrections are in order. The ALTS have been savaged but their day in the sun will come in due course. Beware leverage in such market conditions!
Much of this week’s recap focuses on examining BTC’s recent price action. There’s certainly a lot to discuss.
Picks of the Week
Blowing my own trumpet – the conclusion to the Riding the Bull mini-series is worth your time. Also the video breaking down the current trade dispute between China and the US is very informative.
A sit up straight week for crypto -gripping / exhilarating and of course, just a little bit stressful (especially if you are holding ALTS). Until next time. As always, looking forward to your comments and suggestions.
Note on Sources:
Twitter & Reddit (cryptos current meta-brains) / Medium / Trybe / Hackernoon / Whaleshares / TIMM and so on/ YouTube / various podcasts and whatever else I stumble upon. The aim is a useful weekly aggregator of ideas rather than news. Though I try to keep the sources current – I’ll reference these articles and podcasts etc. as I encounter them – they may have been published just a couple of days ago or in some cases quite a bit earlier.
When the price of a coin is pushing ever higher people get excited and want in on the action. I suppose that is when the FOMO kicks in.
Vertical Line Equals Do Not Buy
The example for today happens to be ChainLink (LINK) which has ripped higher for several reasons, one of which is just being listed on Coinbase the other day.
Here is the chart from 10 hours ago – wow look at it go. I better get in it’s going straight to 10 right!?!
Here is a chart from the time of this post:
And that is why you don’t buy a coins that has gone vertical in price appreciation.
