By Michael Nauss, CMT, CAIA, CDMS
1/ Tech Sell-off
2/ Sector Overview
3/ Oil Close to a Breakout
4/ Airlines Flying
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1/
Tech Sell-off
Courtesy of StatsEdge – Past performance is not indicative of future results.
The entire market was down today, led by the tech sectors. The QQQ closed down 1.7%, threatening recent support. In markets like this, it becomes our job to ask a simple question to look for strength.
What didn’t “they” sell?
2/
Sector Overview
Courtesy of StatsEdge – Past performance is not indicative of future results.
The above chart is a heat map of sectors that I watch to try to see the market’s underlying health. Although the market was down significantly today, there were a fair amount of green sectors to keep an eye on here.
It’s good to keep a list like this to notice themes like energy and metals being strong. From there, we can dive into the charts of a few of these sectors to see if anything stands out for a potential trade.
3/
Oil Close to a Breakout
Courtesy of StatsEdge – Past performance is not indicative of future results.
Oil has been in a range for two years now, and that range has been contracting.
We are nearing the higher end of this wedge, with some good relative strength shown today.
4/
Airlines Flying
Courtesy of StatsEdge – Past performance is not indicative of future results.
The airline ETF was one of the leaders in 2024 and held well into today’s action.
This puts us at the high end of a range we have been in from the beginning of November. A break of this could lead to some continued strength.
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Originally posted 8th January 2025
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