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So the battle rages on at the 300 level:

[ATTACH=full]103859[/ATTACH]

Some further under-the-hood observations:

There's been a number of different stories flowing around this morning regarding the fact that more than 90% of stocks in the S&P 500 are above their 50-day moving averages (DMA) and how that has historically been a bullish indicator for the subsequent performance of the market.

A second notable aspect of the names listed pertains to recent performance. In going through the charts of the names listed, you would expect to mostly see charts of bombed-out stocks that were so weak that they couldn't even manage to rally in this environment. While that was the case for many of them, there were also a number of stocks that actually outperformed in the initial stages of the bear market, but have started to fall apart either later in the decline, or in many cases, after the market bottomed. The nine stocks shaded in the table below (charts below) all traded at 52-week highs at least two weeks after the S&P 500 peaked in late February. These are all generally names that investors thought would benefit from the pandemic and a prolonged decline. Not that markets have stabilized, though, and the economy appears to be on the mend, there's been a rotation out of them. One example is Citirix Systems (CTXS). After hitting a 52-week high as recently as May 11th, it now finds itself on the loser list.

[ATTACH=full]103860[/ATTACH] [ATTACH=full]103861[/ATTACH]

Just the point that: identifying individual stocks is harder than identifying sectors. Even identifying sectors is fraught with difficulties. Unless you are using some form of mechanical system (new found appreciation for the mechanical chaps) that will put you in and take you out quickly, it is possible to get bogged down or back the wrong horse so to speak.

With regard to the battle at 300: currently I like (see as bullish) the rising 20SMA. That could well provide the support to push the index through that resistance point.

[ATTACH=full]103862[/ATTACH]

Financials coming to the party. Lagging for sure, many will be concerned on rising loan defaults and bank capitalisation. The 'major' banks (once again) will not be allowed to fail. There may well be issues, however, they will resolve. This essentially means that a very important sector for the overall health of the market will bolster the overall market performance.

[ATTACH=full]103863[/ATTACH]

Energy is a two edged sword as far as the market is concerned. Too little, and it negatively impacts. Too much and inflation becomes an issue. The bottom is in for energy. It will however take (quite a bit of) time to recover from all the issues. The energy sector won't be a drag, but neither will it support overmuch the move in the overall market.

[ATTACH=full]103864[/ATTACH]

This is the 'Military Industrial Complex'. Starting to move. It was never going to be allowed to fail. Moreover it will once the initial COVID issues resolve, become the focus in another cold war that is developing with China. The other sector will be Tech.

jog on
duc

<blockquote data-quote="ducati916" data-source="post: 1074387" data-attributes="member: 2975">So the battle rages on at the 300 level:[ATTACH=full]103859[/ATTACH] Some further under-the-hood observations:There&#039;s been a number of different stories flowing around this morning regarding the fact that more than 90% of stocks in the S&amp;P 500 are above their 50-day moving averages (DMA) and how that has historically been a bullish indicator for the subsequent performance of the market. A second notable aspect of the names listed pertains to recent performance.&nbsp; In going through the charts of the names listed, you would expect to mostly see charts of bombed-out stocks that were so weak that they couldn&#039;t even manage to rally in this environment.&nbsp; While that was the case for many of them, there were also a number of stocks that actually outperformed in the initial stages of the bear market, but have started to fall apart either later in the decline, or in many cases, after the market bottomed.&nbsp; The nine stocks shaded in the table below (charts below) all traded at 52-week highs at least two weeks after the S&amp;P 500 peaked in late February.&nbsp; These are all generally names that investors thought would benefit from the pandemic and a prolonged decline.&nbsp; Not that markets have stabilized, though, and the economy appears to be on the mend, there&#039;s been a rotation out of them. One example is Citirix Systems (<a href="https://www.bespokepremium.com/interactive/ticker/CTXS" target="_blank">CTXS</a>).&nbsp; After hitting a 52-week high as recently as May 11th, it now finds itself on the loser list. [ATTACH=full]103860[/ATTACH] [ATTACH=full]103861[/ATTACH] Just the point that: identifying individual stocks is harder than identifying sectors. Even identifying sectors is fraught with difficulties. Unless you are using some form of mechanical system (new found appreciation for the mechanical chaps) that will put you in and take you out quickly, it is possible to get bogged down or back the wrong horse so to speak.With regard to the battle at 300: currently I like (see as bullish) the rising 20SMA. That could well provide the support to push the index through that resistance point.[ATTACH=full]103862[/ATTACH] Financials coming to the party. Lagging for sure, many will be concerned on rising loan defaults and bank capitalisation. The &#039;major&#039; banks (once again) will not be allowed to fail. There may well be issues, however, they will resolve. This essentially means that a very important sector for the overall health of the market will bolster the overall market performance.[ATTACH=full]103863[/ATTACH] Energy is a two edged sword as far as the market is concerned. Too little, and it negatively impacts. Too much and inflation becomes an issue. The bottom is in for energy. It will however take (quite a bit of) time to recover from all the issues. The energy sector won&#039;t be a drag, but neither will it support overmuch the move in the overall market.[ATTACH=full]103864[/ATTACH] This is the &#039;Military Industrial Complex&#039;. Starting to move. It was never going to be allowed to fail. Moreover it will once the initial COVID issues resolve, become the focus in another cold war that is developing with China. The other sector will be Tech.jog onduc</blockquote>

[QUOTE="ducati916, post: 1074387, member: 2975"] [FONT=Book Antiqua]So the battle rages on at the 300 level: [ATTACH=full]103859[/ATTACH] Some further under-the-hood observations: [I]There's been a number of different stories flowing around this morning regarding the fact that more than 90% of stocks in the S&P 500 are above their 50-day moving averages (DMA) and how that has historically been a bullish indicator for the subsequent performance of the market. [/I] [I][/I] [I]A second notable aspect of the names listed pertains to recent performance. In going through the charts of the names listed, you would expect to mostly see charts of bombed-out stocks that were so weak that they couldn't even manage to rally in this environment. While that was the case for many of them, there were also a number of stocks that actually outperformed in the initial stages of the bear market, but have started to fall apart either later in the decline, or in many cases, after the market bottomed. The nine stocks shaded in the table below (charts below) all traded at 52-week highs at least two weeks after the S&P 500 peaked in late February. These are all generally names that investors thought would benefit from the pandemic and a prolonged decline. Not that markets have stabilized, though, and the economy appears to be on the mend, there's been a rotation out of them. One example is Citirix Systems ([URL='https://www.bespokepremium.com/interactive/ticker/CTXS']CTXS[/URL]). After hitting a 52-week high as recently as May 11th, it now finds itself on the loser list. [/I] [I][/I] [I][ATTACH=full]103860[/ATTACH] [ATTACH=full]103861[/ATTACH] [/I] [I][/I] Just the point that: identifying individual stocks is harder than identifying sectors. Even identifying sectors is fraught with difficulties. Unless you are using some form of mechanical system (new found appreciation for the mechanical chaps) that will put you in and take you out quickly, it is possible to get bogged down or back the wrong horse so to speak. With regard to the battle at 300: currently I like (see as bullish) the rising 20SMA. That could well provide the support to push the index through that resistance point. [ATTACH=full]103862[/ATTACH] Financials coming to the party. Lagging for sure, many will be concerned on rising loan defaults and bank capitalisation. The 'major' banks (once again) will not be allowed to fail. There may well be issues, however, they will resolve. This essentially means that a very important sector for the overall health of the market will bolster the overall market performance. [ATTACH=full]103863[/ATTACH] Energy is a two edged sword as far as the market is concerned. Too little, and it negatively impacts. Too much and inflation becomes an issue. The bottom is in for energy. It will however take (quite a bit of) time to recover from all the issues. The energy sector won't be a drag, but neither will it support overmuch the move in the overall market. [ATTACH=full]103864[/ATTACH] This is the 'Military Industrial Complex'. Starting to move. It was never going to be allowed to fail. Moreover it will once the initial COVID issues resolve, become the focus in another cold war that is developing with China. The other sector will be Tech. jog on duc[/FONT] [/QUOTE]

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