Notes:
* It seems like the health care sector is making an inverse head and shoulders pattern.
* A break out from this pattern could mean that health care stocks lead the market and the sector may see new all-time-highs.
* Be on the lookout for trade ideas in this sector as it's showing tonnes of accumulation recently
* You may also look to buy the sector ETF if...
Summary
This week we are sharing 2 rebound trade opportunities in healthcare and biotech, AMEX:XLV and AMEX:XBI , which are showing relative strength against S&P500 and Nasdaq , making them better candidates to trade for rebound.
Since the beginning of 2022, skyrocketing inflation and increasing recession risk have pushed the broad equity markets to the...
The megaphone structure has completed the 5-wave structure and is likely to enter into the next phase of the bullish upside after a morning star candle formation is seen rebounding from the demand zone at 124.95. To add, the inverted head and shoulder pattern is indicative of a bullish reversal pattern.
We're seeing value health care ($XLV) show a lot of relative strength against other sectors as the dollar has been pushing. ($KRE) is often tied to growth when compared to it's bigger brother ($XLF) and eventhough financials do tend to benefit from rising rates, this has been much more of a hard landing and the financial rotation many expect may not come to pass,...
Bear markets, economic slow downs, recessions, inflation, the Fed, Jerome Powel, etc... It's enough to make anyone feel sick. Well, step right into the Doctors office because I have the cure for what is making you ill. But before I start writing prescriptions, we need to apply a diagnosis. First let us review the causes:
Soaring Commodities.
Crashing...
This chart was created to accompany a blog post which explores leveraging machine learning (RNN: LSTM) using Tensorflow Keras and SHAP to determine which factors (indicators and correlations with Macro, such as oil futures prices, Fed Funds rate, consumer spending, etc) are found by the model to be the most predictive in nature.
Findings will be posted in the comments.
XLV is likely either Dbl. Top or H&S(with double head). When I find these price patterns, I always plan my trading deliberately. Sometimes, if the entry zone is not appropriate, I will pass it. But, for this stock, even the entry price is almost out of the zone, I still make the trading plan due to competitive RRR. Hopefully, my plan is correct.
XLV appears to be bouncing around in a rectangle for quite some time. It is a fairly wide rectangle which is neutral until a trendline is broken.
XLV appears to have formed a W pattern inside that rectangle that topped out at the 1.113 which caused a throwback and price landed back inside the rectangle. If you take a look at the bottom valleys of the W (almost...
Mr. Market is happy today! So what am I doing? Searching for short opportunities, of course. XLV fits the bill.
As you can see, there's a rather significant On Balance Volume divergence with price. This is often a leading indicator signifying a potential price reversal. I'm going to wait just a bit for it to get below the red support line but then jump right...
While the equity indices have been setting up bearishly especially on the longer-term charts, one bright spot is Healthcare and the SPDR ETF tracking this sector AMEX:XLV . Given the weakness in the indices, bullish positioning should be avoided unless (1) the position is short-term, tactical and position sized, or (2) the position is within a defensive sector...
Rebounce right on that pivot level.
With series of retracements, it's now form a well support level.
I am bullish on coming trends, let's hoping it makes wild rally soon.
In my last published Idea I showed the sector performance YTD till about the 14th. Now the market has turned and the best performers are the worst performers
to the 14th from January 1. So now you know where the most action is and the least. It might be smart to buy some QQQ as it is heavily weighted with the best 3
performing sectors- XLY,XLK,XLC. The upward...
