|If you are looking for trades with tailwind and very high profit probability, being in tune with how the sectors are rotating makes it easy to land big gains. Keith Harwood has been spot on with his analysis of where money is going and how to stay ahead of it. He outlined how he has done it below and has invited us to his webinar this afternoon where he lays out what is coming next. |
Sign up for his event here and scoll down to see how he spots these moves.
Keep learning and trade wisely,
Market Wealth Daily
What Trades I Am Looking At Today
Wednesday, April 21st
4:30 pm EST / 1:30 pm PST
From Keith Harwood:What Sector To Watch Next
|Over the last few weeks, my focus has been on two main sectors: technology and energies.|
Well, technologies had a big run, and while I was pushing that it could be explosive a few weeks ago, I was also really hesitant to add there in the last week. Then, oil had a quick pop and then faded quickly along with the rest of the market.
Needless to say, for those that are trying to just invest and ignore the market rotation, it’s been a bit of a challenge.
And for those that are paying keen attention to this market chop, there’s been a lot of great trading opportunity. For example, on February 19th, I was a bit worried about tech, so took a swing trade with a bearish bias in MSFT. Take a look at the chart, and you may be able to see why:
For the keen eye, you can see that support failed at the 10-Day Moving Average in purple, and since it did so in very precise fashion, it required a close analysis.
But then on March 5th, I was convinced that the long-term trend was now the better play, and you can take a look at that chart and see why, as MSFT recovered some key moving averages (in particular, the 50-Day Moving Average in blue) and started to prove that support was present:
At the end of the day, the swing trade netted 63% in 2 weeks on the bearish trade. The trend trade has netted 80% in the 6+ weeks since as MSFT has rallied 11.5%. Clearly, there’s even more money to be made in MSFT for the trader even if the investor is struggling. While MSFT is just one name in the NASDAQ 100, there are many more stocks and many more sectors to trade!
I’ve been highlighting oil as a sector that could cause explosive behavior, and we got an initial look at that last week when OIH spiked before it faded back with the rest of the market:
But if oil as a commodity stays where it is, does OIH really need to sell off? Right now, this is one of my prime sectors to watch.
But, it’s not the only sector I’m watching! If you want to know what other sectors I’m looking at, make sure to sign up for today’s webinar!
Please take this chance to review how I apply technical signals to my options trades at http://optionhotline.com, attend today’s webinar by going to https://optionhotline.com/featured-webinar/what-trades-im-looking-at-today/, and if you have any questions, never hesitate to e-mail me.