{"id":131136,"date":"2018-08-01T06:05:18","date_gmt":"2018-08-01T10:05:18","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=131136"},"modified":"2018-08-01T07:57:00","modified_gmt":"2018-08-01T11:57:00","slug":"us-stock-market-sector-breakouts-taking-place","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/us-stock-market-sector-breakouts-taking-place\/","title":{"rendered":"US Stock Market Sector Breakouts Taking Place"},"content":{"rendered":"
August 1, 2018<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Now is the time for traders to really pay attention to the rotation in the US Stock market as well as the continued price rotation in certain sectors.\u00a0 As we have been warning for the past few months, this really is a stock pickers market.\u00a0 Take a minute to review our past articles highlighting these sector moves and the general market sentiment over the past few weeks: June 24:\u00a0Could A Big Move In The Global Markets Be Setting Up?<\/a><\/strong>\u00a0&\u00a0Q2 GDP vs. Technology Concerns vs. Foreign Markets<\/a><\/strong>.\u00a0 As traders, we need to understand how capital migrates towards opportunities and safety and how it migrates away from risks and price collapses.<\/p>\n

Over the past months, our research team at\u00a0Technical Trades Ltd.\u00a0has been pouring over the charts to identify these moves and to keep our subscribers ahead of these trends.\u00a0 The US Dollar and the recent Q2 earnings season reporting have acted like pouring fuel onto a burning fire.\u00a0 BOOM.\u00a0 We highlighted the potential for increased volatility and price rotation weeks ago and we continue to try to identify the best opportunities for our subscribers.<\/p>\n

Today, our research has really paid off with moves in sectors that we\u2019ve highlighted and been trading for weeks.\u00a0 Our proprietary price modeling systems have shown us what to expect in the markets going forward many weeks and months.\u00a0 We\u2019ve been calling for the NQ to hover near 7400 while we\u2019ve been expecting the DOW and S&P to continue to rally higher.\u00a0 We\u2019ve been sharing our research that we believe the Transports, Russell and many of the Blue Chips will perform much better than the hot technology sector and other sectors and its starting to happen now.<\/p>\n

Capital appears to be migrating out of technology on weakness and expected continued pricing pressures and that capital will be attempting to find new sources of security and growth.\u00a0 Earnings numbers have been generally strong, therefore, we expect this capital to migrate into stronger, dividend producing and transportation based equities. With the 4.1% GDP number, the expectations going into the end of this year should be that the economy may stay hot and these sectors could continue to rally.<\/p>\n

This Weekly IWM Chart shows dual Fibonacci extension levels that coincide near $184.\u00a0 These levels show us that the upside potential for this move in the Russell 2000 ETF, which is really only an 8~10% price rally) could accelerate upward throughout the end of this year as the US economy continues to push harder and the migration of capital continues to roll out of the hot technology sector and into more traditional sectors.<\/p>

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We\u2019ve highlighted the projected price point where this targeted level seems to be a key element of our analysis.\u00a0\u00a0 This level also coincides with key Fibonacci price projection points.\u00a0 It makes sense to us that as capital moves out of technology and other risky sectors, this capital will be seeking a safe and secure investment in stocks that have the opportunity to perform well throughout the end of the year with a strong US economy.\u00a0 Retail, Transportation, the Russell 2000 and more traditional Blue-Chip equities seem to be the renewed targets for this capital.<\/p>\n

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This Weekly chart of the IYT (Transportation ETF) highlights the continued higher low price rotation patterns that have driven continued rallies in price.\u00a0 The last three low price rotations were key to setting up a new Pennant Formation Breakout that has just started.\u00a0 This breakout pattern is key to understanding the upside potential for the Transportation Index.\u00a0 These upside targets are 3.6% & 6.8% higher than current prices.\u00a0 This represents a very solid opportunity for traders over the next 4+ months as we head into the Christmas and Thanks Giving holidays \u2013 the Santa Rally.<\/p>\n

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What was hot over the past 4+ months, may start to flatten out and rotate lower over the next few months as capital migrates into newer opportunities headed into the end of 2018 with a strong US economy.\u00a0 Our opinion is that technology will become a weakening market sector for at least the next 30~60 days as revisions to earning and expectations, as well as continued issues from China and globally, drive a capital re-balancing process across the globe.\u00a0 This migration of capital will move into new, more traditional, equities as a source of security and growth.\u00a0 Capital always attempts to find the best environment for security, growth and limited risks.<\/p>\n

For example, we just locked in a 12% profit on the financial sector using FAS, and we feel it is still headed higher, all this happened while technology stocks sold off.<\/em><\/strong><\/p>\n

If you want to see what our proprietary modeling tools are saying about the markets and what to expect in the near term future, then visit\u00a0www.TheTechnicalTraders.com<\/a>\u00a0to learn how we can help you find and execute better trades while staying ahead of these market trends and cycles.\u00a0 Our proprietary price modeling tools are second to none and have proven to be extremely accurate over the past 6+ months.\u00a0 Don\u2019t miss the next big moves in the markets.\u00a0 Learn how we can help you find and execute better trades with our specialized research, daily videos, proprietary modeling systems and more.\u00a0 Watch how these markets rotate over the next few weeks to see how accurate our analysis really is.<\/p>\n

Chris Vermeulen<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Now is the time for traders to really pay attention to the rotation in the US Stock market as well as the continued price rotation in certain sectors.\u00a0 As we have been warning for the past few months, this really is a stock pickers market.\u00a0 Take a minute to review our past articles […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-131136","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=131136"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131136\/revisions"}],"predecessor-version":[{"id":131137,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131136\/revisions\/131137"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=131136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=131136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=131136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}