Something that I might add is that the XLB seemed to hold up better into the end of the week than most of the other sectors. Look at FCX for example, it's been a dog over the last month or so, and yet this week it was essentially break even. Interesting action there. I'd been following SWC as a potential short leg in a spread, (I don't spread, but I've been playing with identifying relative strength/weakness in prophet charts during the week). That thing, as weak as it is, couldn't even get below the weekly A down level on Tuesday when the market just gave it up. Something seems to be up in the metal space, heck XME was UP on the week! Not a lot up on the week...
One thing I've noticed is since I've been doing spread trading exclusively I've been looking at the market from a different lens. It took a while for my brain to start viewing things from a relative value perspective and put direction as an afterthought. Hell Alot of times I could care less about direction lol. If you are a directional trader I would stick you getting good at that cause spreading is a different world!
Ok, last post, I swear. Look at XLV, what a mess that's been. I had been talking with some of the folks who are regulars here about it getting a little ahead of itself with regard to the assumption that Obama Care was going to be thrown out. Now we've got monthly A downs across the board with some ugly H&S patterns, (if that's your thing). In addition, some of these names have already confirmed their quarterly A downs, (so there's probably some more downside to come). BMY, (a former fav of mine) got hit really hard early in the week. The thing that first put the XLV on my radar though was the move early in the morning on the 3rd. That wick seemed to imply to me that there was some big selling pressure just above that 37.80 level. Wasn't really a failed monthly for me though, so it was just something I kept on the radar.
Oh yeah, no plans to jump ship, it's just interesting to begin to look at something different. Absolutely no plan to change my plan, (not yet anyway).
Lol it looks like me, you, and Mav are the last ones left in this thread. King pops in every once in a while! Everybody else moved on to the next flavor of the month lol
I don't trade XLV very often buy I've notice it's been one of the weakest sectors on my 5 day number line for a while. Just looked at the daily chart it does look ugly. You looking for shorts in this space?
JNJ, ILMN, BMY, BAX, DNDN, FMS - (if it can confirm that monthly). Just a few names outta some of what I'm seeing. Just pulled a quick one out of FINVIZ, looking for optionable names with decent short interest. I'm gonna so some more work now. Looking for names that have confirmed the monthly as well as the quarterly, (hopefully).
Yeah, the nomads have left. On to the next thing. "All the world's a stage, And all the men and women merely players; They have their exits and their entrances, And one man in his time plays many parts" William Shakespeare